§ Ms LawrenceTo ask the Chancellor of the Exchequer if he will make a statement on the Inland Revenue's practices of permitting some professional businesses to work out their profits for tax purposes on a cash basis. [22436]
§ Dawn PrimaroloI have today authorised the Inland Revenue to withdraw the practices which permit some professional businesses to pay tax on profits worked out on a specially favourable basis (the "cash" basis). This will level the playing field for all businesses and correct an anomaly for which there is no justification. It is fully in line with the Government's objective of a fair and equitable tax system.
The proposals, which will affect tax due for 1998–99 and later years, are set out in an Inland Revenue Press Release. Comments are invited by 14 February 1998.