§ Mr. Pawseyasked the Chancellor of the Exchequer whether he has any proposals to amend section 41 of the Finance Act 1981 following the removal in his Budget of the restrictions on holding index-linked Government stocks.
§ Mr. RidleySection 41 is still required to deal with income and gains arising from the original issue of restricted index-linked stocks which are held by insurance companies. However, the removal of the restrictions on holding these stocks means that the section is no longer appropriate in its present form. I propose, therefore, to table an amendment on the Committee stage of the Finance Bill which will provide that section 41 will no longer apply to purchases of the original stock made after today or where the stock is no longer held and applied solely towards pension liabilities.