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Retirement Relief Etc

Volume 82: debated on Wednesday 10 July 1985

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12.30 am

I beg to move amendment No. 91, in page 160, line 46, leave out 'date of the disposal' and insert

'end of the year of assessment in which the disposal occurred'.

With this we may discuss Government amendments Nos. 92, 93 and 95.

These amendments are designed to standardise the time limits for the making of claims to reliefs under schedule 18. Various other elections are provided for under that schedule. Both the claim and the elections will now require to be made within two years of the end of the year of assessment in which the event to which the claim or election relates took place. This will simplify administration and I hope it will be welcomed in all parts of the House.

Amendment agreed to.

Amendments made: No. 92, in page 162, line 36, leave out 'disposal concerned' and insert
`end of the year of assessment in which the disposal occurred'.
No. 93, in page 166, line 38, leave out from 'than' to third 'the' in line 39 and insert
'two years after the end of the year of assessment in which the individual or the trustees received the capital distribution'.—[Mr. Peter Rees.]

I beg to move amendment No. 94, in page 169, line 16, at end insert—

'(4) References in this paragraph to relief given under this Schedule include references to relief given under section 34 of the Finance Act 1965 or section 124 of the Capital Gains Tax Act 1979; and—
  • (a) in relation to relief given under either of those sections paragraph (b) of sub-paragraph (1) above shall have effect as if, for the words from "which was" onwards, there were substituted "made by the individual"; and
  • (b) in the application of sub-paragraph (3) above where the earlier disposal was a disposal in respect of which relief was given under either of those sections, the reference in paragraph (a) to the qualifying period appropriate to the disposal is a reference,—
  • (i) if the disposal took place on or before 11th April 1978, to the period of ten years ending with the disposal; and
  • (ii) in any other case, to the qualifying period within the meaning of the section in question.'
  • This amendment takes care of a transitional point which I say candidly we did not have time to prepare and put in for debate in Committee. Schedule 17 contains special rules for applying a ceiling to the amount of retirement relief available on a later disposal when some relief has already been given on an earlier one. The broad intention is to ensure that no individual can get more than die maximum relief, which is up to £100,000 throughout his life.

    Amendment 96 is to ensure that a husband or wife who has been working in partnership or in a company and has received shares by way of gift or by inheritance, will get the full relief to which the donor spouse would have been entitled. That relief will be limited to £100,000. I hope that these two amendments will commend themselves to the House.

    Amendment agreed to.

    Amendments made: No. 95, in page 169, line 34, leave out from `(e)' to 'the' in line 35 and insert
    `not later than two years after the end of the year of assessment in which the material disposal occurred'.
    No. 96, in page 170, line 15, at end insert—
    '(5) In sub-paragraph (4)(a) above, the reference to relief given under this Schedule includes a reference to relief given under section 34 of the Finance Act 1965 or section 124 of the Capital Gains Tax Act 1979'.—[Mr. Peter Rees.]