§ 3. Mr. Nabarroasked the Chancellor of the Exchequer whether he has considered the scheme, details of which have been sent to him by the hon. Member for Kidderminster, introduced by a Scottish hire purchase company, in conjunction with a commercial bank, which allows fax relief to be obtained by buyers of goods on hire purchase in respect of interest charges associated with the transaction; and whether the Inland Revenue have approved this arrangement.
§ Mr. Selwyn LloydDetails of this scheme were submitted to the Inland Revenue, which indicated that, subject to the usual conditions, it would regard the interest paid to the bank as qualifying for tax relief under the existing law.
§ Mr. NabarroDoes not this decision of the Inland Revenue mean that there is different treatment in taxation matters in the context of hire-purchase transactions north of the Border from that accorded south of the Border? Why should a fiscal preference be given to Scots at the expense of Sassenachs? I am a Sassenach. and I resent this.
§ Mr. LloydI think that my hon. Friend is generalising too much. This 285 relates to a particular transaction, and I do not think that it necessarily has all that much advantage for the persons engaged in it.