asked the Minister for Finance the estimated cost to the Exchequer in 1989 of the Section 84 tax concession; whether he had any discussions with the banks in relation to varying the concession; and if he will make a statement on the matter.
Written Answers. - Section 84 Tax Concession.
38.
No firm estimate is yet available of the cost to the Exchequer in 1989 of section 84 loans. For 1987, the cost in terms of corporation tax forgone is estimated at £95 million and the corresponding initial estimate of cost for 1988 is £98 million. When account is taken of the levy on section 84 interest, the net Exchequer cost is estimated as £80 million for each of the years 1987 and 1988.
The cost of the various tax-based financing mechanisms, including section 84 loans, has been kept under regular review and discussed with the various bodies concerned including the banks.