§ Mr. Maxwell-Hyslopasked the Chancellor of the Exchequer whether it is the practice of the Inland Revenue to allocate to each of the income tax years in which it was generated the appropriate portion of interest paid by the Department of the Environment in respect of delayed compensation payments for land acquisition, or whether the whole interest is grossed with the other income of the taxpayer concerned for the one income tax year in which the interest is actually paid.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 3rd May 1978; Vol. 949, c. 190], gave the following information:
The law provides that such interest is to be treated for all income tax purposes as income of the year in which it is paid or made available. There is no provision for relating it back to earlier years.