§ Mr. Foulkesasked the Chancellor of the Exchequer if he will estimate the loss of revenue resulting from 542W companies reducing their tax liability by disposing of assets to nationalised undertakings whereby such undertakings are themselves able to reduce their tax liability in respect of such assets; and if he will seek to legislate to end this practice.
§ Mr. Ridley[pursuant to his reply, 26 July 1982, c. 357]: I recognise the arrangement that the hon. Member has in mind. This is an artificial scheme for tax avoidance, which the Inland Revenue will be challenging under existing law. The revenue at risk could be considerable, however, and I am considering whether legislation is needed to put the matter beyond doubt.