HC Deb 12 January 1995 vol 252 cc183-4W
Sir Fergus Montgomery

To ask the Chancellor of the Exchequer what assessment he made when introducing his new anti-avoidance rules affecting financial assets held by associates of banks, of the effect on registered housing associations borrowing from the private finance markets; and what plans he has to amend the Finance Bill to exclude them from these provisions.

Sir George Young

The proposal in question affects the tax treatment of certain financing transactions between banking groups and a range of different borrowers including, as it appears, a number of housing associations. It applies to the lender rather than the borrower in these transactions, and does so without reference to the characteristics of the borrower. It will impinge on housing either suitable for open competition or require skills and experience which are not available within the public service. In addition, some £80,000 was spent on advertising the posts nationally and on the legitimate expenses of candidates called for interview.

Back to
Forward to