§ Mr. Knoxasked the Chancellor of the Exchequer if he will take steps to harmonise the practice of the Inland Revenue and Her Majesty's Customs and Excise with regard to the tax treatment of expenditure on Christmas parties for employees, in so far as it relates, on the one hand, to the non-charging to income tax of such expenditure as a benefit in kind, within modest limits, and the extent to which those costs can be offset against the company's value added tax liability, on the other.
§ Mr. Norman LamontGiven the differences in purpose and scope between the taxes administered by Inland Revenue and Her Majesty's Customs and Excise, I am not aware of any respects in which the practices of the two Departments in relation to the treatment of expenditure by employers on annual parties for their employees need to be harmonised, but if my hon. Friend knows of difficulties in this area perhaps he will write to me.