§ Mr. KirkwoodTo ask the Chancellor of the Exchequer if it is his policy that the thin capitalisation proposals issued by the Inland Revenue on Budget day are intended to apply to the voluntary sector; and if he will make a statement.
§ Sir George Young[holding answer 12 December 1994]: The thin capitalisation proposals were not intended to have an adverse effect on the voluntary sector. It is now apparent that, in some cases, they could do so. I therefore intend amending the provision at the Committee stage of the Finance Bill to exclude charities and their subsidiaries from its scope.