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Publicans (Gratuities)

Volume 982: debated on Tuesday 15 April 1980

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asked the Chancellor of the Exchequer if he will make a statement regarding the Inland Revenue's proposals to tax drinks which customers buy for public house landlords.

No more than a broad estimate of the effects can be given at this stage and the table below provides a breakdown of the information in the Explanatory and Financial Memorandum to the Social Security (No. 2) Bill.

licensees are taxable. Free drinks bought for licensees and managers, even though they may be in the nature of gratuities, are not ordinarily taxable since they are not normally convertible into cash.