§ Mr. Peter Reesasked the Chancellor of the Exchequer whether he is aware that, on the transition from the classical to the imputation system of corporation tax, the total tax burden on a close company and its shareholders can, in certain instances, exceed the company's income; and what action he proposes.
§ Mr. NottYes. My right hon. Friend is tabling amendments to the Finance Bill today to deal with this matter and with some other points affecting close companies on the change of company tax system. In view of the technical nature of the amendments, I am arranging for an explanatory note to be placed in the Library.