Finance Bill

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Mr. Flight: I beg to move amendment No. 152, in

    schedule 33, page 394, line 13, at end insert 'assets'.

I shall be exceedingly brief. This is a probing amendment, as it seems unclear that the apportionment rules set out in paragraph 20 will produce the correct result if the transferred business was previously reinsured by the transferer to the transferee. Thus the liabilities would be included in the opening liabilities of the transferee. I understand that such a situation is not unusual. Our amendment is designed so that the provision would not apply to situations in which assets had previously been transferred under reinsurance arrangements.

John Healey: I accept that the amendment is a probing one. I understand that a major firm of accountants is advocating the amendment, and that it thinks that the amendment will make the provision work properly when one company that has reinsured business with another transfers that business to the reinsurer. There may be situations in which the provision does not give quite the right answer. I suggest that the hon. Gentleman's advisers get together with Revenue officials to establish whether there is a problem. If there is a problem, the solution is not just to add the word ''assets'', as the amendment does. On that basis, I hope that the hon. Gentleman will withdraw it.

Mr. Flight: I thank the Economic Secretary for his response. If the problem that has been suggested to me exists, there is a route to solving it. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Schedule 33, as amended, agreed to.

Gillian Merron (Lincoln): I beg to move, That further consideration be now adjourned.

Column Number: 209

Mr. Wilshire: I realise that that is a debatable motion. I promise the Committee that I am not about to debate it. I simply want to put on record that after a hiccup the usual channels are back on track, and I am grateful for that.

The Chairman: I am grateful to the hon. Gentleman. I hope that before they leave the Committee Room

Column Number: 210

tonight, both Whips will clarify for the Chair how and when the knives will be out, and where they will fall.

Question put and agreed to.

Adjourned accordingly at eleven minutes to Eleven o'clock till Thursday 22 May at five minutes to Nine o'clock.

The following Members attended the Committee:
Winterton, Sir Nicholas (Chairman)
Baron, Mr.
Boateng, Mr.
Burnett, Mr.
Cruddas, Jon
Cunningham, Mr. Jim
Cunningham, Tony
Djanogly, Mr.
Flight, Mr.
Healey, John
Hendrick, Mr.
Howarth, Mr. George
Jack, Mr.
Laws, Mr.
Lucas, Ian
McKechin, Ann
Mallaber, Judy
Marris, Rob
Merron, Gillian
Mountford, Kali
Munn, Ms
O'Brien, Mr. Stephen
Pond, Mr.
Price, Adam
Primarolo, Dawn
Prisk, Mr.
Quinn, Lawrie
Southworth, Helen
Sutcliffe, Mr.
Trickett, Jon
Wilshire, Mr.

 
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