HL Deb 13 February 1992 vol 535 cc843-4

3.40 p.m.

The Lord Chancellor (Lord Mackay of Clashfern)

My Lords, I beg to move that this Bill be now read a third time.

Moved, That the Bill be now read a third time.—(The Lord Chancellor.)

Lord Mishcon

My Lords, before we say farewell to this consolidation measure, I wonder whether your Lordships would wish to hear a short opinion given by the Institute of Chartered Accountants in Scotland. I am sure that the noble and learned Lord the Lord Chancellor will enjoy it. The convenor of the institute's taxation practice committee has this short but useful comment to make which I hope will be of use to those who deal in future with consolidation measures relating to taxation. The observation reads: The Bill amounts to 306 pages of complex legislation but it has the merit of bringing the legislation on capital gains tax together. Until this Bill is enacted, tax practitioners are faced with the dilemma of dealing with very complex legislation that is scattered throughout the Taxes Act and is difficult to find, let alone understand. We urge the Government and the Office of Parliamentary Counsel to ensure that the benefits of the consolidation exercise are not lost. We recommend that those involved in progressing the Bill take this opportunity to explore the possibility of framing tax legislation in a manner which would allow it to cope more easily with the inevitable subsequent amendments. To do otherwise will result in the benefit of the newly consolidated legislation being lost quickly as further amendments are introduced in subsequent Acts". That concludes a very worthy quotation.

Lord Renton

My Lords, I was about to express, but in a somewhat different form, some of the views just put forward by the noble Lord, Lord Mishcon. We have to face the fact that, although this consolidation Bill is confined to only part of our revenue law, and a rather limited part at that, it runs to 306 pages. It is full of detailed and complex legislation which will sometimes be difficult for experts, even chartered accountants in Scotland, to understand.

While I acknowledge the fact that the draftsman has done the most wonderful job of work—and it was indeed a formidable task for him—I join the noble Lord and those who have made representations to him in hoping that in future legislation of this or any other kind we may somehow achieve greater clarity and simplicity.

Lord Cockfield

My Lords, I do not wish to be totally out of order, but perhaps I may suggest to the noble Lord, Lord Mishcon, that the best way of dealing with his complaint is to abolish the capital gains tax. That would avoid the necessity of these erudite exercises in producing the most elegant legislation on a subject which would have been better had it not been there at all.

The Earl of Erroll

My Lords, without wishing to decry the remarks just made by the noble Lord, I suggest that that applies also to much other legislation. It is often very difficult for us laymen to understand the tortuous convolutions of following one Act which amends another and another and so on. Perhaps the passage quoted by the noble Lord, Lord Mishcon, is apt for all our legislation.

Lord Cocks of Hartcliffe

My Lords, I had not intended to speak, but the previous contribution suggests to me that, having disposed of this mountainous task, the noble and learned Lord the Lord Chancellor might also consider giving the same easement to the officers of social clubs throughout the country by consolidating their legislation soon.

Lord Callaghan of Cardiff

My Lords, perhaps I may be allowed to say just a few words. As I was responsible for introducing the capital gains legislation in 1965, I promise to do better the next time I become Chancellor of the Exchequer.

The Lord Chancellor

My Lords, it is always very interesting to have such distinguished promises from such distinguished promisers. However, so far as concerns the general advice given by the Institute of Chartered Accountants in Scotland, I am sure that all of us would do well to take note of it. Obviously the exercise of consolidation is an important one. I am grateful to those noble Lords who have commended the quality of the consolidation. I can only say to the noble Lord, Lord Cocks of Hartcliffe, that it is an exercise which will gradually, I hope, encompass the whole of the statute book.

On Question, Bill read a third time.

The Lord Chancellor

My Lords, I beg to move that this Bill do now pass.

Moved, That the Bill do now pass.—(The Lord Chancellor.)

On Question, Bill passed, and sent to the Commons.