§ Mr. Pollock
asked the Chancellor of the Exchequer if he will make a statement about the availability of capital gains tax rollover relief for oil licence gains.
§ Mr. Norman Lamont
For a number of years the Inland Revenue has proceeded on the basis that the present law does not allow capital gains tax rollover relief in respect of gains on the disposal of any oil licence interests. A recent decision of the special commissioners indicates that this understanding of existing law was incorrect, and that an oil licence may be a qualifying asset for rollover relief purposes. The Government propose, as early as possible in the next Parliament, to bring forward legislation with retrospective effect to make clear that this relief is not in fact available for oil licence gains.