§ Mr. Hordern
asked the Chancellor of the Exchequer to what extent his proposed capital gains tax will be paid both by a company and its shareholders; whether a company will be liable for corporation tax on franked income; whether trusts which pay no Income Tax will be liable for corporation tax; whether the element of capital appreciation in a redeemable security running to maturity will be liable to capital gains tax; and if he will make a statement.
§ Mr. Stratton Mills
asked the Chancellor of the Exchequer (1) if he will prepare a scheme to limit the tax liability of executors under the proposed capital gains tax when they have to sell assets to pay Estate Duty which have already been assessed on their increased value; and if he will ensure that the total liability thereon is not more than either the estate duty or the capital gains tax assessment;
(2) if, when preparing the proposed capital gains tax legislation, he will make adjustment for depreciation in the value of money between Budget Day 1965 and the sale of the asset;
(3) if, when preparing the proposed corporation tax, he will take account of those companies which have a high ratio of preference capital; and if he will give an assurance that they will not be placed at a disadvantage.
§ Mr. MacDermot
These matters are being studied and I regret that I cannot make any statement about them.