§ 38. Mr. Clifton-BrownTo ask the hon. Member for Middlesbrough, as representing the Church Commissioners, what steps the Commissioners are taking to reorganise their investment portfolio as a result of the withdrawal of ACT credit. [11773]
Mr. BellI am grateful to the hon. Gentleman for his assistance in Committee in moving the amendment on Clause 35 of the Finance Bill which dealt with the abolition of the tax credit for charities and which would, had the amendment been carried, have been of assistance to the Commissioners.
The Commissioners welcome the time allowed by the Government for them to plan for the removal of ACT relief and the phasing of its impact between 1999 and 2004. We put our case to the Government after the changes announced in the Budget. As to investment policy in the light of the withdrawal of ACT credit, the Commissioners have decided that at least half of our portfolio should comprise investments in a wide range of United Kingdom commercial and industrial shares. We continue to think that these are appropriate assets to meet the needs of our beneficiaries within the Church of England and we are playing an active part in putting the case for full exemption from taxation to be restored to charities.
§ Mr. FlightTo ask the hon. Member for Middlesbrough, representing the Church Commissioners, if he will make representations to the Chancellor of the Exchequer in respect of compensation to the Church of England for the impact of the abolition of advance corporation tax credits on dividend income managed by the Commissioners. [11850]
Mr. BellThe Commissioners put their case to the Government after the changes announced in the Budget and were active in briefing honourable Members in preparation for the debate on Clause 35 of the Finance Bill, which introduced the abolition of the tax credit for charities. They are contributing to the Government review of the taxation of charities. Submissions are being made by the Church Commissioners, the Churches Main Committee and other church organisations.