§ Mr. Viggersasked the Chancellor of the Exchequer whether, under his stock relief proposals, the existing definition of stock in trade will continue to apply; and, in particular, whether work in progress remains within the scope of the scheme.
§ Mr. Peter ReesThe proposed new scheme of stock relief will apply to both stock and work in progress. The definition of these items will remain broadly as it is now, subject to certain technical changes which will clarify entitlement to relief in certain situations and bring the valuation of stock and work in progress more into line with accountancy practice. Details of the proposed changes were set out in an Inland Revenue press release on 23 December 1980.
§ Mr. Viggersasked the Chancellor of the Exchequer whether paragraphs 5.30 to 5.32 of the consultative paper
456W
Tax-free income at October 1980 prices Single Married Married with 1 children Married with 2 children Married with 3 children Married with 4 children £ £ £ £ £ £ 1979–80 1,357 2,114 2,356 2,598 2,840 3,082 1980–81 1,375 2,145 2,367 2,589 2,812 3,034 Tax-free income as a percentage of average male manual earnings per cent. per cent. per cent. per cent. per cent. per cent. 1979–80 21.9 34.1 38.0 41.9 45.8 49.7 1980–81 21.7 33.9 37.4 40.9 44.4 47.9 (provisional) on stock relief mean that clawback of relief under the old scheme will for the future be limited to those occasions only on which the new relief is subject to clawback
§ Mr. Peter ReesThe proposals in paragraphs 5.30 to 5.32 of the consultative document relate to the clawback of relief under both the old and new schemes. Clawback charges arising under the old scheme which were deferred to a period falling within the proposed new arrangements will continue to be dealt with under the existing rules.