§ Mr. Squireasked the Chancellor of the Exchequer if he has anything to add to the answer given to the hon. Member for Hornchurch on 5 March, Official Report, column 644, regarding the introduction of regulations setting out the rules for withholding tax at source on certain payments made to visiting entertainers and sportsmen.
§ Mr. Norman LamontOur intention is that the regulations will be made on 26 March and will come into force on 1 May. The regulations, which were published in draft last December, were the subject of widespread consultation and we have been carefully considering the many comments which were received. The short delay in the introduction of the new scheme reflects our concern to ensure that those responsible for making payments have a little more time to assimilate the new procedures.
In the light of the representations, we have decided to exclude payments which arise from the sale of records from the scope of the regulations. This reflects the fact that they are currently treated as exempt from tax under many of our double tax treaties.
Also, in the light of representations, the regulations will provide that tax need not be deducted where the payment does not exceed £1,000 (as compared with the figure of £500 in the draft regulations), and a number of more detailed administrative changes will be made.
A guide to the new rules aimed specifically at those responsible for making payments to visiting entertainers and sportsmen will be available when the regulations are made and laid before the House.