HC Deb 29 July 1983 vol 46 c716W
Sir Brandon Rhys Williams

asked the Chancellor of the Exchequer in what conditions the uplift on the principal repayable on maturity of a value added or dynamised loan stock may be deductible from the issuing company's profits; and if he will broaden the provisions to assist companies whose commitments in regard to the terms of repayment of the principal have increased more rapidly than the retail price index.

Mr. Ridley

I refer my hon. Friend to the reply I gave him on 19 July.—[Vol. 46, c. 104.] Where the uplift on the principal of a loan stock is specifically linked to inflation, it will generally be a capital item and so not deductible against the issuing company's profits. But the particular tax treatment of a stock will depend on all its terms. If my hon. Friend has a particular example in mind and can provide me with further details, I shall be glad to look into it and write to him.