§ Mr. Mandelson
To ask the Chancellor of the Exchequer if he will estimate the direct effect on revenue in the year 1992–93 had the clauses in chapter II, part II of the Finance (No. 2) Bill of 1993 been brought into effect from the beginning of the 1992–93 tax year.
§ Mr. Dorrell
[holding answer 5 July 1993]: If the Finance Bill proposals for the taxation of foreign exchange gains and losses had been introduced from April 1992, corporation tax receipts in 1992–93 would not have been affected because mainstream corporation tax is not due for payment until nine months after the end of the accounting period. Accruals of tax would have started to be affected but many of the accounting periods first affected are not yet finished. Also, the tax change may itself have affected the levels of borrowing.