§ Mr. Chris Smith
To ask the Chancellor of the Exchequer what percentage of bank provision against less-developed country debt will be accepted for the financial year 1989–90 as appropriate to offset against corporation tax liability.
§ Mr. Lilley
Banks are entitled to a tax deduction for the proportion of doubtful debt which is estimated to be irrecoverable. The amount will be negotiated between the Inland Revenue and the banks when the banks submit their accounts for the year.