§ Mr. McCrindle
asked the Chancellor of the Exchequer if he will make it his policy to seek to ensure that tax changes announced in future Budget statements will take effect from a minute past midnight on the day of his statement.
§ Mr. Moore
[pursuant to his reply, 16 April 1986, c. 418]: I refer my hon. Friend to the statement I made in the debate on the Budget resolutions on 19 March at columns 377–78. Some Budget changes which affect income tax and corporation tax have to take effect more or less immediately. Where changes of this kind are proposed, it has been the normal practice in the past for those which work to the taxpayers' advantage to take effect on or after Budget day, but for those which impose or increase tax to take effect only after Budget day. In future the Government will consider making changes effective from the start of Budget day to prevent forestalling. This practice is already frequently followed for the capital taxes. As far as taxes on consumer expenditure (value added tax and excise duties) are concerned, the Government see no need to depart from the long-standing practice of applying changes from the most convenient and appropriate time after the Budget statement.