§ Mr. Chapmanasked the Chancellor of the Exchequer if he has any plans to seek to amend the definition of an investment trust; and if he will make a statement.
§ Mr. Norman LamontUnder the Finance Bill the whole of section 93 of the Finance Act 1972 would be repealed. Most of the section is concerned with the arrangements which were introduced to secure a 30 per cent. rate on the capital gains of companies. These arrangements would be overtaken by the changes in the Bill for companies' capital gains, and therefore need to be repealed. Section 93(6), however, relates to the circumstances in which an investment trust can be approved under section 359 of the Income and Corporation Taxes Act and hence qualify for tax exemption on its capital gains. The need for subsection (6) will remain. In the time available it has not been possible to correct the repeal schedule in the Finance Bill, but we shall be introducing in next year's Bill a provision to preserve subsection (6). This provision will be effective from 17 March 1987, the date from which the repeal of section 93 has effect under the Bill.