HC Deb 24 July 1979 vol 971 cc183-4W
Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer whether he will introduce legislation to allow the costs of raising business loan finance as a deduction for tax purposes.

Mr. Peter Rees

I have considerable sympathy with this proposal to which I know a number of representative bodies attach a great deal of importance. There are, however, a number of substantial issues about the type of finance and the nature of the expenses which need to be fully considered before legislation could be introduced. These matters are a suitable subject for consultation and I have therefore authorised the Inland Revenue to seek the views of interested parties to establish whether agreement can be reached on a scheme of relief in this limited and relatively self-contained areas with a view to possible legislation next year.

Accordingly the Inland Revenue will prepare a short discussion document on which comments will be invited from the main representative bodies concerned. It will be available on request to any other organisations or individuals who may wish to comment.