I can appreciate why the hon. Lady raises that point, but recent evidence from inheritance tax returns suggests that the majority of business overdrafts and loans continue to be unsecured. There may well have been changes to the balance between secured and unsecured business overdrafts and loans in recent years, but it remains the case that the majority are unsecured. Where security is provided, it is typically in the form of a charge on a business property. I understand why she raises the point, but the evidence suggests that this will not cause the concern that she anticipates. All measures are kept under review and this will be no exception, but we believe that we have got the balance right. This will address a distortion and an avoidance opportunity. I therefore hope that these proposals, as refined by the amendments, will become part of the Bill.
Amendment 1 agreed to.
Amendments made: 2, page 105, leave out lines 39 to 43.
Amendment 3, page 106, line 4, leave out ‘spouse or civil partner’s’ and insert ‘deceased’s’.
Amendment 4, page 106, line 7, leave out from first ‘date’ to end of line 19 and insert—
‘if, on the date—
(a) in the case of a lifetime election—
(i) the person making the election was married to, or in a civil partnership with, the spouse or civil partner, and
(ii) the spouse or civil partner was domiciled in the United Kingdom, or
(b) in the case of a death election—
(i) the person who is, by virtue of the election, to be treated as domiciled in the United Kingdom was married to, or in a civil partnership with, the deceased, and
(ii) the deceased was domiciled in the United Kingdom.’.
Amendment 5, page 106, line 21, leave out ‘spouse or civil partner’ and insert ‘deceased’.
Amendment 6, page 106, line 27, leave out ‘or (4)(b)’.
Amendment 7, page 106, line 41, leave out ‘a lifetime or death election’ and insert
‘an election under section 267ZA(1)’.—(Mr Gauke.)