I beg to move,
That, for the purposes of any Act resulting from the Legislative and Regulatory Reform Bill, it is expedient to authorise the making of provision under the Act in relation to income tax, corporation tax, capital gains tax, stamp duty or stamp duty reserve tax in connection with a transfer of property, rights or liabilities by or under an order under Part 1 of the Act.
When transferring regulatory functions from one regulator to another, it may be necessary to provide in an order to transfer assets and liabilities from the old to the new regulator. Without further provision, a transfer could, in some circumstances, result in inappropriate tax consequences for the transferor or transferee that would arise solely because of the transfer. Clause 6 tackles those unwanted consequences. It allows the Treasury to make tax provision by regulations in relation to a transfer of property rights and liabilities under an order in part 1. That will ensure that the transfer does not give rise to a tax charge or confer a tax advantage on the transferor or transferee. The resolution authorises the relevant provision.
Why was not the resolution presented earlier? It is extraordinarily odd to introduce it before consideration of Lords amendments when nothing has changed.Part 1 has existed throughout our deliberations and always intended to create the circumstances for transfer. The tax provisions would therefore always have been necessary.
When we reach the debates on the amendments, we can discuss the changes that have been made to tax provision. The hon. Member for Somerton and Frome (Mr. Heath) will find that amendments were proposed to make some changes to the tax provisions in the Bill after it left this House. I hope that that clarifies matters.
Question agreed to.
LEGISLATIVE AND REGULATORY REFORM BILL (PROGRAMME) (NO. 3)
Motion made, and Question put forthwith, pursuant to Standing Order No. 83A(6) (Programme motions),
That the following provisions shall apply to the Legislative and Regulatory Reform Bill for the purpose of supplementing the Orders of 9th February 2006 and 15th May 2006 (Legislative and Regulatory Reform Bill (Programme) and Legislative and Regulatory Reform Bill (Programme) (No.2)):
Consideration of Lords Amendments
1. Proceedings on consideration of Lords Amendments shall (so far as not previously concluded) be brought to a conclusion two hours after their commencement at this day’s sitting.
2. Any further Message from the Lords may be considered forthwith without any Question being put.
3. The proceedings on any further Message from theLords shall (so far as not previously concluded) be broughtto a conclusion one hour after their commencement.—[Liz Blackman.]
Question agreed to.