Paymaster General Dawn Primarolo insisted there had only been ‘a small number’ of such agreements entered into at various dates since 1988 and that only three were made since the start of 1997, none of which ‘are now considered current’.
Primarolo did not disclose whom these involved but admitted: ‘The Inland Revenue are contending in Court proceedings that the third is invalid.’
In response to questions posed in by Lewes Liberal democrat MP Norman Baker, who said some of the arrangements post-1998 involved taxpayers domiciled outside the UK, she said:
‘Typically the arrangements agree a practical basis for taxing future income and gains where there would otherwise be particular difficulties in establishing and exact figure.’
The wording of Primarolo’s response did not rule out any of the deals involving UK domiciled taxpayers, nor rule out other deals pre-1988, or deals post 1997, which are considered current.
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