§ Sir Brandon Rhys Williamsasked the Chancellor of the Exchequer what is the current rate of tax payable by companies in respect of income derived from assets in the ownership of the company; and what is the rate of tax payable when such assets are transferred to the pension fund of the company.
§ Mr. Moore[pursuant to his reply, 18 March 1985, c. 392]: I regret the delay in replying. The rate of tax payable by companies in respect of income derived from assets in the ownership of the company depends on the tax status of the company concerned. A company may make contributions to its pension fund but cannot directly transfer assets. If the contributions are used to purchase assets from the company then the latter may face a capital gains tax liability in respect of the sale of the assets. Investment income and capital gains of pension funds are exempt from tax.