§ Mr. GibbTo ask the Chancellor of the Exchequer what assessment he has made of the effect of the repeal of section 255 of the Taxes Act 1988 on companies which have in issue fixed-rate preference shares created before 6 April 1973. [58349]
§ Dawn PrimaroloThe effect of the repeal of section 255 of the Taxes Act 1988 was considered as part of the general assessment of the changes flowing from the Government's decision to abolish Advance Corporation Tax from 6 April 1999.
The Government took into account the cumulative effect of twenty-five years' inflation on the value of any remaining shares to which section 255 applies, and subsequent changes, including those effective from 6 April 1999, to the taxation of companies and shareholders which mean that it no longer works as intended.