§ 69. Mr. Arthur Lewisasked the Chancellor of the Exchequer what is the policy of Her Majesty's Government towards the Community legislation to harmonise the rates of taxes on capital formation; what discussions have taken place with the Community on the 1969 directive; and whether he will make a statement on these discussions.
§ Mr. NottWe accept the principle that there should be the greatest possible 337W degree of harmonisation. We have asked for the merger relief provided by the 1969 directive to be amended to cover mergers by exchange of shares; the Commission has now published a draft directive which would, if adopted, have this effect.