HC Deb 19 January 1965 vol 705 cc6-9W
46. Sir C. Osborne

asked the Chancellor of the Exchequer if he is aware that the proposed corporation tax and long term capital gains tax will bear hardly on staff superannuation schemes such as that of the National Coal Board; and what special steps he will take to alleviate the effect of these taxes on such schemes.

Mr. Callaghan

I would refer the hon. Gentleman to my statement of 8th December in which I made it clear that approved superannuation funds which are entitled to exemption from Income Tax would not themselves be chargeable either to corporation tax or capital gains tax.

47. Sir C. Osborne

asked the Chancellor of the Exchequer, in view of the fact that 3½ per cent. War Loan price has fallen below 55 per cent., that the £ sterling purchasing power has fallen to one-third its pre-war level, and that holders have been deprived of five-sixths the real value of their investment, it he will exempt all Government securities from his proposed capital gains tax, and help restore confidence in the gilt-edged market; and if he will make an early statement.

Mr. Callaghan

I would refer the hon. Gentleman to my statement of 8th December and to answers given on 22nd December in which I made it clear that the charge to tax on a gain realised after next Budget day will not be on an amount greater than any gain that is realised. There will thus be no charge when there is in fact an overall loss.

57. Mr. Fisher

asked the Chancellor of the Exchequer whether it is his intention that all assets should be valued before the introduction of the proposed new capital gains tax; and how valuations on this scale will be carried out.

59. Mr. William Clark

asked the Chancellor of the Exchequer whether valuations made after Budget day 1965 will be accepted, in view of the shortage of professional valuers and the impracticability of having a nation-wide valuation of all items subject to the proposed capital gains tax.

Mr. Callaghan

I must ask hon. Members to await my proposals. Where necessary, valuations can be made at a date subsequent to the Budget.

58. Mr. William Clark

asked the Chancellor of the Exchequer if he will publish a summary of the main ideas so far submitted by representative bodies on the subject of capital gains and corporation taxes.

Mr. Callaghan

I do not think such a course would advance the purpose of enabling me to consider the views of the representative bodies concerned.

Mr. Geoffrey Lloyd

asked the Chancellor of the Exchequer (1) whether, for the purpose of the proposed capital gains tax, realisation will include the vesting of assets in a deceased's personal representatives; (2) what forms of insurance policy will be exempted from the proposed capital gains tax; (3) whether he will make a statement on the position under the proposed capital gains tax of unit trusts offering insurance cover.

Sir C. Taylor

asked the Chancellor of the Exchequer whether, in computing the total income of companies for each accounting period, subsequent to April, 1965, for the purpose of corporation tax, unused Income Tax and Profits Tax losses for earlier years will be taken into account.

Mr. Callaghan

I must ask hon. and right hon. Gentlemen to await my legislative proposals which will be introduced in due course.

Mr. Geoffrey Lloyd

asked the Chancellor of the Exchequer whether he will now set out in a White Paper the effect of the proposed corporation tax on double income tax agreements.

Mr. Callaghan

I doubt whether this subject would be suitable for a White Paper, but I have noted the hon. Member's suggestion.

Mr. Arthur Lewis

asked the Chancellor of the Exchequer whether he will publish in HANSARD a list giving the number of trade unions which have written to him objecting to his proposed capital gains tax and corporation tax, and the grounds of these objections.

Mr. Callaghan

None. One trade union wrote to me expressing fears about the effect of the proposed corporation tax on the income of its pension fund. I am glad to say that these fears were misconceived.

Sir Knox Cunningham

asked the Chancellor of the Exchequer if he is aware that many limited liability companies are not renewing seven-year covenants to charities, which have fallen due for renewal since the end of 1964, because of their uncertainty about the situation with regard to corporation and other taxes; and whether he will take an early opportunity to clarify the position in the interests of charitable bodies.

Mr. Callaghan

I would ask the hon. Gentleman to await the introduction of my detailed proposals.