§ Mr. Peter BottomleyTo ask the Prime Minister, if Ministers, at the time of the 1985 Budget, intended to lay regulations to create liability for tax relating to a year for which building societies composite rate tax liability had been fully discharged; what estimate of the money involved was available to Ministers at the time; and what, and when, an estimate was first made available to Parliament.
§ The Prime MinisterThe 1985 Budget day press release announced that there would be transitional provisions to deal with the changeover for building societies from an annual to a quarterly accounting system in line with that for the banks.
The announcement followed confidential discussions with building society representatives during which Ministers made it clear that the provisions would cover payments between the end of societies' accounting periods in 1985–86 and 5 April 1986 that would otherwise fall out of account.
No estimate was made at the time of tax on interest accruing between the end of societies' accounting periods ending in 1985-86 and paid before the end of that tax year. No estimate covering all societies has subsequently been 24W made available to Parliament. For societies other than the Woolwich Equitable, I refer my hon. Friend to the reply given to him by the Economic Secretary on 21 June at column 341.