§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what has been the outflow of currency in the form of United Kingdom residents' foreign currency deposits each month since the lifting of exchange controls; and if he will make an estimate of the amount of United Kingdom tax which will be lost by evasion and avoidance as a result.
§ Mr. LawsonInformation on changes in United Kingdom residents' foreign currency deposits with United Kingdom banks is given in table 7.2 of "Financial Statistics". Information on the changes in United Kingdom residents' foreign currency deposits abroad is not available.
Where a foreign currency account is opened in the United Kingdom, the normal reporting requirements for banks under the Taxes Acts apply. It is not possible to estimate the loss of tax which may arise from United Kingdom residents opening foreign currency accounts abroad.