§ Mr. BurnsTo ask the Chancellor of the Exchequer what assessment he has made of the current legislation for reinvestment rollover relief which allows individuals and most trustees to defer capital gains tax on any chargeable gains which they reinvest in an unquoted trading company.
§ Mr. DorrellA loophole has been identified in the capital gains tax reinvestment rollover relief rules. This enables taxpayers in certain circumstances to convert what is meant to be a tax deferral into an outright exemption. The main circumstances are where someone reinvests in shares bought from a spouse or where someone realises gains on two or more disposals and reinvests in shares whose market value is less than the total gains realised.
The Government intend to correct this defect in the next Finance Bill. The new rules will apply to disposals, acquisitions and other chargeable events occurring on or after today. Further details are given in a press release which the Inland Revenue is issuing.
§ Mr. SteenTo ask the Chancellor of the Exchequer if he will cause a case-stated to be delivered to Mr. Marriott of Barnstormers, West Lane, Higher Blagdon, Paignton, as requested, following the hearing at the beginning of February before the Commissioners with regard to capital gains tax liability arising from a defunct business; if he will make a statement as to the reasons for the delays in delivering a case-stated; and if he will cause bankruptcy proceedings to be halted until the case-stated has been delivered so as to provide the information needed for an appeal.
§ Mr. DorrellI wrote to my hon. Friend on 15 June.