andMr. P. Barry asked the Minister for Finance why he is allowing for a drop of over £3 million in anticipated revenue under the “miscellaneous” heading of non-tax revenue; and if he will give a breakdown of the revenues involved.
Written Answers. - Non-Tax Revenue.
345.
The drop relates to accrued interest included in the issue price of tranches of Government stocks. When these tranches are created and sold, the selling price includes an element for interest which has accrued from the date of the last dividend date for the stock in question up to the date of sale. Quite obviously that part of the sale price which relates to such accrued interest cannot be treated as a capital receipt and so it is treated as an item of current income. The amount of tranches created in the last quarter of 1977 and to be created in the first three quarters of 1978 is expected to be less than in the last quarter of 1976 and the first three quarters of 1977. In consequence accrued interest in 1978 is expected to be some £3 million less than in 1977.
Apart from accrued interest, fee stamp at £3.25 million account for most of the remainder of the 1978 estimate. Given the uncertainty attached to these small remaining individual items it is not possible to give a further breakdown of what is essentially a global estimate.