HC Deb 25 July 1983 vol 46 cc304-6W
Mr. Woodcock

asked the Chancellor of the Exchequer if he can now give any further information about the action he intends to take on those proposals in this year's first Finance Bill which were neither enacted in the Finance Act 1983 nor reintroduced in the current Finance Bill.

Mr. Malone

asked the Chancellor of the Exchequer whether he intends to introduce legislation to implement the provision of clause 58(4) relating to capital gains tax of the Finance Bill introduced in the last session of the previous Parliament.

Mr. Lilley

asked the Chancellor of the Exchequer when he intends to bring forward legislation introducing new rules governing the tax treatment of domestic sterling loan stock issued by companies at a discount, in accordance with the Budget statement; and if he will publish draft clauses in advance.

Mr. Lawson

I have already announced that the oil taxation changes dealt with in chapter II of part IV of the first Finance Bill will be the subject of an oil taxation Bill to be introduced in the autumn.

As previously indicated, I have been reviewing the rest of these proposals for inclusion in the 1984 Finance Bill. Having regard to the representations which were made following the publication of the earlier Finance Bill, it would clearly be helpful to take the opportunity for further consultation on some of the original proposals, and also to publish for comment the draft clauses which the Government had intended to add to the earlier Bill but which were in the event not published before the Dissolution of Parliament. I am accordingly authorising the Inland Revenue to publish draft clauses (or revised clauses), when ready, on the following subjects:


Group relief 38, 39 and schedule 6

Controlled foreign companies 44 to 52, and schedules 7, 8 and 9

Capital gains tax: foreign trustees and non-resident settlements 61 and 62, and the proposed new clause on non-resident trusts announced by the Financial Secretary in a written answer on 29 March 1983

Special commissioners 95 and schedule 17


Capital and income bonds Announced by the Financial Secretary in a written answer on 29 April 1983

Pension funds: transactions in financial futures Announced by the former Chief Secretary in a written answer on 5 May 1983

Furnished holiday lettings Announcements made by the Financial Secretary during the Finance Bill dabates on 11 May 1983 [Official Report, Vol. 42, c. 840] and 6 July 1983 [Official Report, Vol. 45, c. 361]

Interest on Eurobonds and Deep discounted stock Proposals announced in the Budget (15 March 1983) and further details given in Inland Revenue budget day press release

I intend to reintroduce the following provisions in the 1984 Finance Bill with effect from the starting dates originally proposed:

Starting date Clause number in first Finance Bill
Self-employed persons living in job-related accommodation 6 April 1983 20
Trustee savings banks 21 November 1982 37
Stock relief: houses taken in part exchange 15 March 1953 40
Capital gains tax: monetary limits for reliefs (relieving provisions only) 6 April 1983 Part of clause 58
Capital gains tax: foreign currency accounts 6 April 1983 60
Capital transfer tax: special discretionary trusts 9 March 1982 67
Capital transfer tax: property moving between settlements 15 March 1983 68
Capital transfer tax: adjustments of tax 1 April 1983 71
Development land tax: own use deferment Continues relief which would otherwise expire on 1 April 1984 89
Development land tax: payment by instalments 6 August 1983 91

Since current tax liabilities may in some cases be reduced by these proposals, the Inland Revenue will be authorised, where appropriate, to hold over the collection of tax for the time being, or to settle liabilities provisionally, having regard to the reliefs proposed.

I propose that provisions on the following topics should also be included in the 1984 Finance Bill, subject to the comments noted:

Comments Clause number in first Finance Bill
VAT: refund of tax to Government Departments and health authorities To be implemented on an extra-statutory basis from 1 September 1983 10
VAT: conditions imposed on discretionary registration It will be proposed that this measure should take effect from Royal Assent to the 1984 Finance Bill 11
Reliefs for share options Under review for the financial year 1984–85 29
Increase in limits for apportionment of income of close companies It will not be proposed that this change should apply for 1983–84 32
Relief for discounts on bills of exchange of trading companies It will not be proposed that this change should apply for 1983–84 33
Relief for incidental costs of obtaining loan finance It will not be proposed that this change should apply for 1983–84 36
Carry back of surplus ACT It is intended that this measure should be phased in from the original starting date (1 April 1984) and at least as quickly as originally proposed 41
Double taxation relief to be given before ACT As before, the proposed starting date will be 1 April 1984 42
Recovery of taxes in lower courts It will be proposed that these provisions should take effect from Royal Assent to the 1984 Finance Bill 43 and 72
Capital gains tax The withdrawal of outdated reliefs will be proposed to take effect from April 1984 58 (part)
Development land tax: non-resident vendors There will be further consultation on this provision 90
Freeports The criteria governing the selection of the first experimental freeports are being announced separately, and applications will be received in 1983 Proposed new clause