§ Mr. AllenTo ask the Chancellor of the Exchequer what steps he is taking to end the avoidance of tax by payment in vintage wine; and if he will make a statement.
§ Mr. DorrellMeasures announced in the Budget, and now published in the Finance Bill, will stop employers avoiding the operation of PAYE—pay as you earn—by paying their staff in assets which can then swiftly be turned into cash. This will include payment in the form of vintage wines, when arrangements exist for the employee to sell those wines. Such payments have always been taxable: the new rules simply remove the ability to defer the tax liability until after the end of the year.