§ Mr. HanleyTo ask the Chancellor of the Exchequer if the Inland Revenue will establish a clearance procedure under which it will advise whether or not a particular trust is a qualifying ESOP trust.
§ Mr. LilleyMy right hon. Friend the Chancellor of the Exchequer proposed in his Budget statement a new relief from capital gains tax for those selling shares to qualifying employee share ownership trusts, as defined by schedule 5 to the Finance Act 1989. Since owners of shares may want to know if a trust is a qualifying trust before a sale of shares takes place, I have authorised the introduction of an arrangement under which the Inland Revenue will be willing to examine executed employee share ownership trust deeds and inform the trustees whether in their view the trust meets the qualifying conditions of schedule 5. The trustees will then be able to inform any potential vendors concerned as to the status of the trust itself.