§ Mr. WOMERSLEY
I beg to move, in page 32, line 37, to leave out from the first word "shall," to the word "the," in line 38, and to insert instead thereof the words:(1) as from the commencement of this Act have effect as if.This and the following Amendment in page 32, line 40, to leave out the words "there were," and to insert instead thereof the words:were not contained therein; andhang together. If this Amendment is accepted, I shall have formally to move the second one in order to make the scheme of Amendments complete. A later Amendment which I have on the Paper has the same object in view. It is in page 32, line 40, after the word "words," to insert the words: 1270(2) be deemed to have had effect up to the commencement of this Act as if after the said words there had been"—(including in the case of a company registered prior to the sixteenth day of May, eighteen hundred and eighty-eight, under the Companies Act of 1862 or otherwise incorporated prior to the thirty-first day of May, eighteen hundred and eighty-nine, an amount equal to the nominal capital of such company as existing at the date a registration or incorporation, as the case may be).I hope that the Chancellor of the Exchequer will be able to accept the first two Amendments; we shall then have no need to proceed with the others. The object of this Clause is to remedy a defect in the drafting of Section 55 of the Finance Act, 1927. That Section was introduced for the purpose of encouraging healthy amalgamations by granting relief from Capital and Transfer Stamp Duty which had previously been payable by amalgamations. Previously, we had the same thing applied to amalgamations of railways and many other things, and it was undoubtedly the intention at the time Section 55 of the 1927 Act was introduced, that these amalgamations of companies which had been formed prior to that time should have the same privileges as were extended to the railway companies and others a year or two before. The object of the Amendments is to remedy this anomaly. As the Section is now drafted, relief from Capital Duty on amalgamation can only be obtained in respect of capital on which Duty has previously been paid. The result is that companies with capital which was authorised before the imposition of the Capital Duty cannot obtain relief. This is felt more particularly by the statutory companies, such as public utility companies, because the capital in many of these cases was subscribed long before there was any obligation to pay the Duty at all. As the law stands it no doubt acts as a great deterrent to amalgamation. We have heard a good deal about the benefits of amalgamation and rationalisation, and it is with the object of making it easier, that I am moving the Amendment.
§ Mr. PETHICK-LAWRENCE
I have much pleasure in telling my hon. Friend that the Chancellor of the Exchequer is able to accept the first two Amendments, but not the third. The object, therefore, that he has in view will be achieved, that is, "after the commencement of this Act" the amalgamations will not have to pay the Duty where the amalgamation 1271 is of companies that were formed before Capital or Transfer Stamp Duty was charged.
§ Amendment agreed to.
§ Mr. WOMERSLEY
I beg to move, in page 32, line 40, to leave out the words "there were," and to insert instead thereof the words:were not contained therein; and(2) be deemed to have had effect up to the commencement of this Act as if after the said words there had beenMay I express my gratitude to the Chancellor of the Exchequer and the Financial Secretary for accepting these Amendments, which I am sure will be of great use to the people they are intended to benefit.
§ Amendment agreed to.