Clause 22 - Use of stock in trade cars for consideration
Finance Bill
10:00 am
Mr John Healey (Economic Secretary, HM Treasury; Wentworth, Labour)
I will deal with the questions of the hon. Member for Hertford and Stortford (Mr. Prisk) on the nature of the avoidance and who is involved during the course of my explanation of clause 22. I will also do my best to explain the relevance and the operation of nominal value and the case for moving to a market valuation.
The hon. Gentleman asked about losses. They are currently estimated at £5 million a year. That is not a theoretical loss: the estimate is based on abuses that are currently taking place and are known to Customs officials. If this scheme were to be expanded to its full capacity, it is estimated that the annual loss would be between £20 million and £25 million.