Clause 34 - Payments of excessive interest etc
Finance Bill
4:15 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
The hon. Gentleman tempts me into the incredibly complex area of transfer pricing. I want to focus his attention on the provisions in the clause, which will enable the group to match transactions so that its exchange gains and losses cancel each other. The rules work perfectly well now and will work perfectly well in the new environment of UK-UK transfer pricing if interest-free loans are involved. The Government sought to make no changes in their operation. I shall reflect on the issue that he raised in the more detailed question and perhaps, with your leave, Sir John, write to him and to other members of the Committee if I feel that I have not given a complete answer.