HC Deb 28 July 1998 vol 317 cc213-4W
Mr. Streeter

To ask the Chancellor of the Exchequer what assessment he has made of the impact of the single currency on the CFA franc. [52467]

Mrs. Liddell

[holding answer 27 July 1998]: The Government have made no assessment of the impact of the single currency on the CFA franc, which is a matter for member states participating in the euro and, in particular, France.

Mr. Timms

To ask the Chancellor of the Exchequer what assessment he has made of the state of preparations by businesses and other organisations in the United Kingdom for the implications of EMU. [53549]

Mrs. Liddell

The Government today publish their first six-monthly report on preparations for EMU, "Getting ready for the euro: first report July 1998". Copies have been placed in the Libraries of the House.

Ms Lawrence

To ask the Chancellor of the Exchequer if he will make an announcement on the tax consequences of EMU. [53680]

Mrs. Liddell

The Finance Bill provided a power to make regulations in order to prevent unintended tax consequences arising from the start of the single currency in other member States. Following consultations with business, the Government have identified some technical changes that need to be made in order to achieve this. Details of the proposed changes are being published in an Inland Revenue Press Release today, and we shall make the draft regulations available for consultation in the Autumn.

Mrs. Liddell

1996 is the latest year for which information about Member States' contributions and receipts is available. The information requested, in respect of that year, is set out in the table. The amounts shown are in European Currency Units, the unit of account for the EC Budget.

The Government's proposals will help business and other taxpayers by clarifying before the single currency comes into existence on 1 January 1999 how transactions and contracts involving participating currencies will be treated for tax purposes.