§ Mr. Quentin DaviesTo ask the Chancellor of the Exchequer what action he proposes to take in the light of the recent High Court decision in the case of Union Texas Petroleum Corporationv. Critchley.
§ Mr. Norman LamontThe Government propose bringing forward legislation in the 1989 Finance Bill to make clear the amount of United Kingdom tax that is deductible from United Kingdom tax credits to which non-residents may be entitled under the terms of a double taxation convention. The legislation follows the recent decision in the case of Union Texas Petroleum Corporationv. Critchley and its purpose would be to do no more than restore the position to what it was intended to be. It will apply so as to prevent claims to payment of additional tax credit for past years, but will not affect the decision of any commissioners or court given before today.