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Legislative and Regulatory Reform Bill

moved Amendment No. 20: Page 4, line 26, leave out from ““impose”” to end of line 27 and insert ““, abolish or vary any tax”” The noble Lord said: My Lords, I shall also speak to Amendment No. 21. Clause 5 restricts the powers in Clauses 1 and 2, preventing an order imposing or increasing taxation. Concerns were raised in Committee that, unamended, the Bill would leave it open for a Minister by order to reduce or remove taxation. That is not the intention. The first of these amendments will make it clear that an order under Part 1 cannot be used to impose, abolish or vary any tax. The second amendment concerns potential tax liabilities that could arise from the merger of regulators. When transferring regulatory functions from one regulator to another it may be necessary also to make provision in an order to transfer assets and liabilities from the old to the new regulator. In certain circumstances, without further provision, a transfer could result in inappropriate tax consequences for the transferor or transferee body that would arise solely because of the transfer. This amendment addresses those unwanted consequences. It allows the Treasury to make tax provision by regulations in relation to a transfer of property, rights and liabilities by an order under Part 1. This power will allow the Treasury to make appropriate tax provision at the appropriate time to ensure that a transfer does not give rise to a tax charge or confer a tax advantage on either party. It is unlikely that these powers will be needed to be used often, and then only in the unusual circumstances that a merger is being pursued by order that involves the transfer of property, rights and liability. I beg to move. On Question, amendment agreed to.