§ Sir David Mitchell
To ask the Chancellor of the Exchequer what would be the effect on the Exchequer's revenue of applying corporation rather than income tax to the self-employed and partnerships.
§ Mr. Maude
[holding answer 18 December 1991]: 'There would be an effect on the timing of tax payments. Partnerships and the self-employed pay tax for income tax years in two instalments, three months before and three months after the end of the tax year. Corporation tax is paid in one instalment nine months after the end of the accounting period. There would also be an effect on the amount of tax paid, but the extent would depend on how the rules for taxing companies were adapted to tax the self-employed and partnerships.
Mr. Robert Hughes
To ask the Chancellor of the Exchequer what will be the tax consequences of the privatisation of Northern Ireland Electricity.
§ Mr. Maude
The Electricity (Northern Ireland) Order 1991 provides for the transfer of the business assets and liabilities of Northern Ireland Electricity (NIE) to a number of successor companies into private ownership. Under normal tax rules a number of tax consequences would arise solely as a result of the pre-privatisation reorganisation of NIE into the successor companies. We intend to introduce legislation in 1992 designed to treat the reorganisation on a tax-neutral basis in accordance with the Government's general policy on privatisation.