§ Mr. Sackville
asked the Chancellor of the Exchequer if he will be considering changes in the law to remove obstacles to disincorporation; and if he will make a statement.
§ Mr. Norman Lamont
There may be circumstances in which those involved in running a company consider that it would he commercially preferable for the business to be run in unincorporated form. The Government have received representations that there are a number of fiscal and other legal deterrents to moving from corporate to unincorporated status. As indicated in the White Paper "Building Businesses … Not Barriers" (Cmnd. 9794) the Government have been considering ways of removing these deterrents. The Inland Revenue and the Department of Trade and Industry will this week be publishing a consultative document seeking views on possible changes to company and taxation law relating to disincorporation. A copy of the document will be placed in the Library of the House and the closing date for comments will be 31 October 1987.