§ Mr. ArbuthnotTo ask the Chancellor of the Exchequer with reference to the Inland Revenue's guidance that the words substantial extent in the Capital Gains Tax Act 1992, Schedule A1, paragraph 22A(1) means 20 per cent, or more, to what the 20 per cent, figure refers. [84483]
§ Mrs. BrookeTo ask the Chancellor of the Exchequer to what the figure of 80 per cent, used by the Inland Revenue to judge whether a company's activities are primarily trading activities applies. [85069]
§ Dawn PrimaroloThe figure relates to the proportion of a company's activities which are not trading activities. The Inland Revenue will publish guidance in Tax Bulletin 62 (to be issued in December 2002) on how to determine for Capital Gains Tax taper relief purposes whether a company's non-trading activities amount to more than 20 per cent, of its total activities. This guidance, which updates the earlier guidance published in June 2001 in Tax Bulletin 53 by reflecting changes to the legislation which were introduced in Finance Act 2002, is available now on the Revenue website at:www.inlandrevenue.gov uk/bulletins/tax—bulletin—taper—relief.htm.
A hard copy is being placed in the House of Commons Library.