§ Mr. Skinner
asked the Chancellor of the Exchequer if he will outline the new arrangements for tax relief against bad and doubtful international loans to countries rescheduling debts; whether these new tax relief arrangements will apply to British firms also affected by non-payment of debts by rescheduling countries; what estimate he has made of the cost of this new scheme for 1982–83 and 1983–84; and if he will make a statement.
§ Mr. Ridley
[pursuant to his reply, 31 January 1983, c. 20]: No new arrangements have been introduced for tax relief against doubtful debts in relation to international loans. The letter sent to the British Bankers' Association on 17 January 1983, and issued by the Inland Revenue as a statement of practice on 25 January, sets out the general principles which the Inland Revenue has always regarded as applying in law to these debts. The principles apply irrespective of whether the creditor is a bank or some other commercial organisation.