§ Mr. Alexander
asked the Chancellor of the Exchequer if he will consider making arrangements to render the treatment of certificates of tax deposit issued under terms published before 31 July 1980 comparable to that of certificates of tax deposit issued under the current prospectus published on that date when they are used in settlement of higher rate income tax and capital gains tax liabilities payable for 1980–81 and subsequent years of assessment.
§ Mr. Ridley
Yes. At present there is a discrepancy in treatment because the Treasury is not empowered to vary the terms of certificate of tax deposit prospectuses174W published prior to 31 July 1980. As a consequence, these terms do not reflect the postponement of the due dates for the liabilities in question for 1980–81 and subsequent years of assessment which was effected by the Finance Act 1980. This prevents the Treasury from paying interest on deposits received under series 1–4 CTD prospectuses up to the new due date for these taxes when the deposits are surrendered in settlement of them. My right hon. and learned Friend the Chancellor of the Exchequer proposes to seek legislation in this year's Finance Bill to alter the dates of these liabilities for the purposes of old CTD prospectuses, thereby removing this discrepancy and allowing interest to be paid up to the new due date. Appropriate adjustment will be made retrospectively when that legislation is enacted to make the treatment of series 1–4 CTDs surrendered against these liabilities for 1980–81 comparable to series 5 CTDs in this respect.