§ Mr. Michael Lathamasked the Chancellor of the Exchequer what representations he received during July 1975 from the Motor Agents Association regarding corporation tax relief under the Finance Act 1975 on stock held by motor vehicle dealers; what reply he sent; and what further action he intends to take in this matter.
§ Mr. Denzil DaviesThe President of the Motor Agents Association wrote to my right hon. Friend the Chancellor of the Exchequer on 8th July 1975 asking whether stock relief could be extended to the deposits which vehicle distributors have to place with certain manufacturers when cars are supplied to them on a consignment basis. He replied that the deposits were like many other monetary transactions which had been hit by inflation, and that it had not been possible to deal with these matters in the context of last year's scheme of stock relief. He is considering the future form of the relief in the light of the recommendations of the Sandilands Committee on inflation accounting, and will, of course, bear the association's representations in mind.