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Unitary Tax

Volume 113: debated on Wednesday 25 March 1987

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asked the Chancellor of the Exchequer if he will make a further statement on unitary tax.

The Government announced on 18 December 1986 that, while they do not intend to recommend the repeal of section 54 of the Finance Act 1985, they are prepared to defer initiating action under section 54 for the present in recognition of the progress that has been made towards resolving the unitary tax issue. In the meantime, progress towards a final resolution of the unitary tax issue will be kept under careful review. Should it be necessary to take action under section 54 before 31 December 1988 it will not apply to dividends paid before the date of the announcement of such action. If it is necessary to take action thereafter, it will not apply to dividends paid on or before 31 December 1988.