§ Mr. Yeoasked the Chancellor of the Exchequer if, in the light of the decision in Pattison v. Marine Midland Ltd., he will make a statement on the treatment for tax purposes of profits and losses resulting from exchange rate fluctuations.
§ Mr. MooreThe Inland Revenue is, with my approval, issuing a provisional statement of practice on the tax treatment of profits and losses which result from exchange rate fluctuations. The provisional statement is put forward as a practical guide to facilitate the preparation and agreement of tax computations in the light of the decision in the Marine Midland case. I am placing a copy of it in the Library of the House. I have authorised the Revenue to consult interested parties on the scope and content of the provisional statement, on the basis of the law as it stands, and to issue a definitive statement of practice in due course in the light of any comments received. In the meantime, the Revenue will be prepared, if the taxpayer wishes, to settle tax liabilities on the basis of the practice outlined in the provisional statement.