§ Ms Roseanna CunninghamTo ask the Chancellor of the Exchequer what assessment he has made of the impact of his proposal to alter the basis on which members of professions are taxed on their incomes on(a) members of the Faculty of Advocates and (b) solicitors' firms in Scotland. [34607]
§ Dawn Primarolo[holding answer 18 March 1998]: The Inland Revenue Press Release issued on 22 December invited comments on the proposals to withdraw the cash basis practices available to professional businesses. The purpose of consultation was to enable those affected to voice their concerns and to help the Revenue to make a better informed assessment of the impact of the proposed change on different sectors. The Inland Revenue has received a large number of responses and I myself have received many. The Inland Revenue and I have also had meetings with representative bodies, including the Law Society, the Law Society of Scotland, the Bar Council, and the Faculty of Advocates.
Following the consultation, the proposal was refined and developed, and a number of modifications to the original scheme were announced in the Budget. An Inland Revenue press release on Budget Day set out the revised proposal.
§ Ms Roseanna CunninghamTo ask the Chancellor of the Exchequer what representations he has received since 22 December 1997 concerning the alteration of the basis on which members of professions are taxed on their income; and which of these expressed opposition to the proposed changes. [34608]
§ Dawn Primarolo[holding answer 18 March 1998]: We have received a large number of comments and representations on the proposal to withdraw the cash basis practices. Many of these expressed concerns about the effect of the proposal on professions.
Following the consultation, the proposal was refined and developed, and a number of modifications to the original scheme were announced in the Budget. An Inland Revenue press release on Budget Day set out the revised proposal.