§ Mr. Hanley
asked the Chancellor of the Exchequer how many companies, at the latest date available, have 223W applied for clearance under section 53 of the Finance Act 1982; how many have been successful; how many have been refused; and on what grounds the refusals were made.
§ Mr. Moore
At the end of April 1984, 1,389 formal applications for clearance under section 53 of the Finance Act 1982 had been received by the Inland Revenue, of which 53 were subsequently withdrawn on the applicant's own initiative and another 156 are still being considered. Of the 1,280 applications which have been settled, clearance has been given to 1,145 (very nearly 90 per cent.).
Clearance could not be given for the remaining 135 applications because they did not meet the following qualifying conditions:
Number Vendor not to be "connected" with company or group after purchase 34 Purchase to reduce vendor's interest in company or group by minimum of 25 per cent. 26 Shares to be owned for a minimum of 5 years 24 Company/group to be trading 20 Purchase to benefit company's trade 18 Main purpose not to tax avoidance 5 Purchase to take place on or after 6 April 1982 3 Payment of capital transfer tax would cause undue hardship (applications under section 53(2)) 2 Vendor to be United Kingdom resident 2 Company to be unquoted 1