PARLIAMENTARY DEBATES

HOUSE OF COMMONS

OFFICIAL REPORT

Fourth Standing Committee on Statutory Instruments, &c.

DRAFT INCOME TAX (BUILDING SOCIETIES) (ANNUAL PAYMENTS) REGULATIONS 1991

26 February 1991

LONDON: HMSO

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1

The Committee consisted of the following Members:

Chairman: SIR ANTHONY MEYER

Arnold, Mr. Jacques (Gravesham)

Beith, Mr. A. J. (Berwick-upon-Tweed)

Boateng, Mr. Paul (Brent South)

Butler, Mr. Chris (Warrington South)

Cabom, Mr. Richard (Sheffield Central)

Campbell-Savours, Mr. D. N. (Workington)

Davis, Mr. Terry (Birmingham, Hodge Hill)

Dunn, Mr. Bob (Dartford)

Goodhart, Sir Philip (Beckenham)

Hamilton, Mr. Neil (Tatton)

Heal, Mrs. Sylvia (Mid-Staffordshire)

Hordem, Sir Peter (Horsham)

Maude, Mr. Francis (Financial Secretary to the Treasury)

Mitchell, Mr. Austin (Great Grimsby)

Riddick, Mr. Graham (Coke Valley)

Summerson, Mr. Hugo (Walthamstow)

Twinn, Dr. Ian (Edmonton)

Walden, Mr. George (Buckingham)

Mr. F. A. Cramer, Cttee Clerk.

2 Fourth Standing Committee on Statutory Instruments, &c. Tuesday 26 February 1991

[SIR ANTHONY MEYER in the Chair]

Draft Income Tax (Building Societies) (Annual Payments) Regulations 1991

10.30 am

The Financial Secretary to the Treasury (Mr. Francis Maude): I beg to move, That the Committee has considered the draft Income Tax (Building Societies) (Annual Payments) Regulations 1991. The regulations flow from the abolition of composite rate tax and deal with one extremely minor and uncontroversial aspect of that abolition by enabling building societies, when making payments under deeds of covenant, to make tax deductions on precisely the same basis as at present. The regulations are necessary to maintain the status quo, and I commend them to the Committee.

3

10.31 am

Mr D. N. Campbell-Savours (Workington): Is regulation 3(2)(a) correctly interpreted in the explanatory note? It says: "The modifications substitute references to a building society for references to a company". Is that correct?

Mr. Maude: Yes.

Mr. Campbell-Savours: Perhaps my grammar is poor, but I consulted a colleague and we could not work out how the explanatory note reflects the intention of the paragraph. Should not it be other way around?

Mr. Maude: I have nothing to add to what I accept was a fairly taciturn answer to the hon. Gentleman. Although I do not see a difficulty, I shall reflect on whether the explanatory note deals satisfactorily with point, but I believe that it does.

Question put and agreed to.

Resolved, That the Committee has considered the draft Income Tax (Building Societies) (Annual Payments) Regulations 1991.

Committee rose at twenty-eight minutes to Eleven o'clock.

THE FOLLOWING MEMBERS ATTENDED THE COMMITTEE:

Meyer, Sir Anthony (Chairman)

Arnold, Mr. Jacques

Butler, Mr.

Campbell-Savours, Mr.

Davis, Mr. Terry

Hamilton, Mr. Neil

Maude, Mr.

Summerson, Mr.

Walden, Mr.