§ I propose a number of relatively minor amendments to the Capital Gains Tax, mostly of a relieving character. I will mention a few of them now.
§ First, I have decided that advances out of settled property should not give rise to a charge on the whole of the settled property. Next, I propose to amend the rules governing the sale of "rights" on a rights issue. Third, for both Capital Gains Tax and the short-term gains tax, I propose that there shall be no charge to tax when a debtor's assets are transferred to a trustee in bankruptcy.
§ More important, the provision in the Finance Act, 1965, which limits the rate of tax on capital gains of unit and investment trusts to 30 per cent., raises the 1433 question of the rate payable by life assurance companies. I have decided to bring life assurance companies into line with unit trusts and investment trusts. They will pay tax at 30 per cent. on capital gains reserved for their policy holders.