§ Mr. St. AubynTo ask the Chancellor of the Exchequer what account under resource accounting rules is to be taken of the right of third generation mobile spectrum licensees to amortise the cost of their licences from the amount of their future taxable profits and of the consequential future reduction in tax revenue. [128071]
§ Mr. Andrew Smith[holding answer 28 June 2000]Tax relief for the amortisation of third generation spectrum licence costs will reduce corporation tax yields over the lives of the licences. Currently, the resource accounting rules apply only to departmental resource accounts and not to corporation tax. However, subject to the passing of the Government Resources and Accounts Bill, the same accounting principles will apply in due course to the Whole of Government Accounts, which will include corporation tax revenue.