§ Mr. MeacherTo ask the Chancellor of the Exchequer if funds drawn in the form of either interest or capital from a capital sum held abroad by a political party are subject to United Kingdom taxation; and if he will make a statement.
§ Mr. DorrellPolitical parties are chargeable to corporation tax or income and capital gains tax on their profits or gains depending on their status and organisation. Whether sums drawn in the form of interest or capital from a capital sum held abroad are subject to United Kingdom taxation will depend on whether those sums represent profits or gains, and on the particular circumstances in which the sums are drawn.