Amendments Nos. 40a and 40b are related and may be discussed together.
SECTION 182.
I move amendment No. 40a:
In page 160, subsection (3), line 54, after " applying to " to insert " that part of " and after " amount " to insert " in respect of which relief from tax has not been allowed ".
The relevant amount is a specific amount defined in subsection (1) of the section and relief from corporation tax is to be given on that amount. Subsection (2) lays down: that:
(2) Relief, as provided in subsection (3), shall be allowed in respect of a relevant amount against corporation tax payable by the company and such relief shall be given as far as possible from the tax payable for the first accounting period for which the company is within the charge to corporation tax in respect of the trade and in so far as it cannot be so given, from the tax payable for the next accounting period and so on.
Where, because of an insufficiency of income charged to corporation tax, relief from the full relevant amount cannot be given in the first accounting period for which corporation tax liability arises, the balance only of the amount is available for relief in succeeding accounting periods. The amendments confirm that relief in respect of a relevant amount may be given once only and removes the possibility of any contention that this was not the intention of the section.
Amendment agreed to.
I move amendment No. 40b:
In page 161, subsection (3), proviso, paragraph (a), line 2, to delete " relevant ".
Amendment agreed to.
Question proposed: " That section 182, as amended, stand part of the Bill."
This section provides for relief in respect of trading losses and capital allowances which could have been carried forward for income tax purposes to 1976-77 had that tax continued to apply to the profits of companies.
Question put and agreed to.