Written question asked by Gerald Bermingham (Labour) on Monday, 16 February 1998, in the House of Commons. It was due for an answer on Thursday, 19 February 1998. It was answered by Baroness Primarolo (Labour) on Thursday, 19 February 1998 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what estimate he has made of the level of income tax which the Treasury will receive on a professional's profits over the course of a professional's career under the proposed income tax changes for professionals referred to in an Inland Revenue press statement of 22nd December 1997 relative to the current procedures.

Answer: Mr. Bermingham: To ask the Chancellor of the Exchequer what estimate he has made of the level of income tax which the Treasury will receive on a professional's profits over the course of a professional's career under the proposed income tax changes for professionals referred to in an Inland Revenue press statement of 22 December 1997 relative to the current procedures. [30401] Dawn Primarolo: The proposal to withdraw the cash basis practices available to professionals does not affect the total amount of income chargeable to income tax, but changes the timing of when it has to be returned for income tax purposes. Estimates of the effect on treasury receipts from year to year will depend on the final detail of the proposal. It has been the subject of a consultation process which ended on 14 February 1998. We are now reviewing the proposal in the light of the comments received. The final shape of the proposed legislation will not be announced in advance of my right hon. Friend's Budget.

Secondary information