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Mr. Janner : To ask the Chancellor of the Exchequer how many, and what percentage of officers in each of grades 1 to 7 and overall in his Department are (a) women, (b) from ethnic minorities and (c) disabled, respectively.
Column 39Department's ethnic monitoring survey. Figures for (c) are available only for those staff who are registered disabled. The Department employs a number of people with disabilities who have chosen not to register.
(a) (b) Women Ethnic minorities Grade |Number |Per cent.|Number |Per cent. ------------------------------------------------------------ 1 and 1A |- |- |- |- 2 |1 |17 |- |- 3 |3 |14 |- |- 4/5 |8 |11 |- |- 6 |- |- |- |- 7 |34 |18 |4 |2 All staff |639 |43 |148 |10
|£ million ------------------------------- 1986-87 |995 1987-88 |1,078 1988-89 |1,071 1989-90 |1,232 1990-91 |1,262 1991-92 |1,299 1992-93 |1,211 <1>1993-94 |1,290 <1>Provisional estimate.
The figures include receipts from capital transfer tax and estate duty.
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer (1) what is the estimated cost to the Exchequer in (a) 1992-93 and (b) 1993-94 of exempting most family businesses from inheritance tax ; (2) if he will estimate the value of inheritance tax revenues forgone by the Inland Revenue through exemptions and reliefs for (a) business property, (b) agricultural land, (c) woodlands, (d) works of art and (e) historic houses.
|£ million<1> ------------------------------------------------ (a) Business property |55 (b) Agricultural land |70 (c) Woodlands |negligible <1>Estimates rounded to nearest £5 million.
Separate estimates for relief for family business are not available : such relief is contained within the estimates for business and agricultural reliefs.
The estimated annual cost of exemptions and reliefs from inheritance tax for heritage property shows significant fluctuations from year to year. Over the past decade the average annual cost has been :
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer if he will estimate the value of inheritance tax revenues lost by the Exchequer through the use of (a) lifetime gifts and (b) offshore trusts.
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer if he will estimate the value of inheritance tax revenues lost by the Inland Revenue each year through the creation of discretionary trusts made during a donor's lifetime.
Mr. Nelson : Lifetime transfers into most discretionary trusts are subject to a charge to inheritance tax at half death rates, and a top-up charge should the donor die within seven years of such transfers. Most discretionary trusts are also subject to a further charge to inheritance tax every 10 years. The purpose of this regime is to ensure that the tax payable on property passing into discretionary trusts is broadly equivalent to the tax payable if it had passed on death. There is no evidence to suggest that, overall, any inheritance tax is lost through the creation of discretionary trusts.
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer what is the estimated cost to the Exchequer in (a) 1992-93 and (b) 1993-94 of raising the relief from inheritance tax from 30 per cent. to 50 per cent. for (i) shareholdings of 25 per cent. or less in unquoted companies, (ii) agricultural landlords, (iii) smaller shareholdings in unlisted securities market companies and (iv) controlling shareholdings in quoted companies.
Mr. Nelson : Under the Finance (No. 2) Act 1992, business assets and farmland which previously qualified for 30 per cent. relief from inheritance tax were granted 50 per cent. relief. Relief at 50 per cent. was also extended to holdings of 25 per cent. or less without control in unlisted securities market companies which previously did not qualify for relief. The combined costs of these changes are about £5 million in a full year. Separate costs for the different categories in terms of receipts in 1992-93 and 1993-94 are all negligible. No change was made to the 50 per cent. relief received by controlling holdings in fully quoted companies.
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer if he will estimate the total value of all property that changes ownership in one year as a result of the death of the previous owner ; and what proportion of this is subject to inheritance tax.
Mr. Nelson : For estates passing on death in 1989-90, the most recent year for which figures are available, the total value of property that changed ownership as a result of the death of the previous owner is estimated to be in the region of £25 to £30 billion. Inheritance tax was charged on about £3 billion of this value.
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer if he will estimate the cost to the Exchequer in (a) 1992-93, (b) 1993-94 and (c) 1994-95 of raising the threshold for inheritance tax to £150,000.
Year |£ million ------------------------------ 1992-93 |10 1993-94 |15 1994-95 |20
Mr. Redmond : To ask the Chancellor of the Exchequer what is the number and percentage of basic rate and higher rate taxpayers in (a) South Yorkshire, (b) North Yorkshire, (c) West Yorkshire, (d) Humberside and (e) the United Kingdom for the most recent year for which figures are available.
Mr. Dorrell : The table provides estimates for 1991-92, the latest available year for which information can be provided below the United Kingdom level. Estimates of MIRAS are unreliable at county and regional level and have been excluded from the calculation of tax liability for the counties in the table, and for the United Kingdom for consistency.
B Taxpayers liable Taxpayers liable at at only basic rate higher rate |000s |Per cent.|000s |Per cent. ------------------------------------------------------------------ South Yorkshire |505 |97.2 |14 |2.8 North Yorkshire |359 |93.7 |24 |6.3 West Yorkshire |862 |95.9 |37 |4.1 Humberside |327 |94.8 |18 |5.2 United Kingdom |24,800 |93.9 |1,620 |6.1
Ms Corston : To ask the Chancellor of the Exchequer what he estimates to be the total cost in 1994-95 of tax expenditures on (a) relief for occupational pension schemes, (b) contributions to personal pensions, (c) mortgage interest, (d) contracted-out rebate for occupational schemes and personal pensions, (e) married couple's allowance, (f) capital allowances for income tax and corporation tax and (g) inheritance tax transfers not exceeding £150,000.
|£ million ------------------------------------------------------------------------------ Relief for: Occupational pension schemes |<1>7,100 Contributions to personal pensions (including retirement annuity premia and FSAVCs) |1,700 Mortgage interest<2> |3,400 Contracted-out rebate for occupational schemes and personal pensions |7,400 Married couple's allowance |3,500 Capital allowances for income tax and corporation tax |<1>14,400 Inheritance tax nil rate band for transfers not exceeding £150,000 |<1>4,400 <1> These figures are particularly tentative and subject to a wide margin of error. <2> This figure is based on the conventional assumption that mortgage interest rates remain at their current levels.
Mr. Jim Cunningham : To ask the Chancellor of the Exchequer what estimate he has made of the effect on the average family's tax bill of the Budget changes in the married couple's income tax allowance and mortgage interest relief.
Mr. Dorrell : A basic rate taxpayer in receipt of the married couple's allowance will pay £86 more in income tax in 1994-95 following its restriction to 20 per cent. Mortgage interest relief does not in general depend on the income of the mortgagor. It is estimated that the average size of mortgages in the United Kingdom will be greater than the qualifying maximum of £30,000. Assuming current levels of mortgage interest rates, the reduction in relief on the mortgage of £30,000 or over will be £115.50 in 1994-95.
Mr. Maxton : To ask the Chancellor of the Exchequer what are his estimates for 1993-94 and 1996-97 of the cost of tax relief for investment income of (a) occupational pension schemes and (b) personal pension schemes.
Mr. Dorrell : A provisional cost of income tax relief, assuming relief at the basic rate of tax, for the investment income of occupational pension schemes is estimated to be about £5.1 billion in 1993-94. The cost for 1996-97 will depend on future levels of investment, rates of return and tax rates. It is not possible to provide reliable estimates of the cost of exemption for investment income related to retirement annuity contracts and personal pensions.
Mr. Dorrell : My Departments have not introduced any Acts of Parliament since 1990 which are specific to local government. They have, however, introduced Acts containing measures that have been general in their application and will consequently have affected local government in common with other organisations.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer if he will list the statutory, professional, self-regulatory, trade associations and other organisations which are recognised as regulatory bodies under the Financial Services Act 1986.
Self-regulating Organisations (SROs) :
Financial Intermediaries, Managers and Brokers Regulatory Association (FIMBRA)
Investment Management Regulatory Organisation (IMRO)
Life Assurance and Unit Trust Regulatory Organisation (LAUTRO) The Securities and Futures Authority (SFA)
Recognised Professional Bodies :
Chartered Association of Certified Accountants (ACCA)
Institute of Actuaries
Institute of Chartered Accountants in England and Wales (ICAEW) Institute of Chartered Accountants in Ireland
Institute of Chartered Accountants in Scotland
Insurance Brokers' Registration Council (IBRC)
Law Society of Northern Ireland
Law Society of Scotland
Recognised UK Investment Exchanges :
International Stock Exchange of the United Kingdom and the Republic of Ireland Ltd
London International Financial Futures Exchange (LIFFE) London Metal Exchange (LME)
London Commodity Exchange (LCE)
International Petroleum Exchange (IPE)
OMLX London Securities and Derivatives Exchange (OMLX)
Recognised Clearing Houses :
London Clearing House (LCH)
The following recognised overseas investment exchanges are recognised by the Treasury :
Chicago Mercantile Exchange (CME)
Chicago Board of Trade (CBOT)
National Association of Securities Dealers Automated Quotations (NASDAQ)
New York Mercantile Exchange (NYMEX)
Sydney Futures Exchange (SFE)
Mercado de Futuros Financieros Sociedad Rectora de Productos Financieros Derivados de Renta Fija (MEFF RF)
Mercados de Futuros Financieros Sociedad Rectora de Productos Financieros Derivados de Renta Variable (MEFF RV)
Mr. Cousins : To ask the Chancellor of the Exchequer to what extent fines imposed by regulatory bodies created by the Financial Services Act 1986 are deductible for tax ; and what representations he has received on this point.
Mr. Dorrell : The general rule when calculating trading profits for tax purposes is that revenue expenditure incurred wholly and exclusively for the purposes of the trade is an allowable deduction. Expenditure incurred on a fine imposed as a result of a trader committing an infraction would not be incurred wholly and exclusively for the purposes of the trade.
No representations have been received on this point.
Mr. Bill Michie : To ask the Chancellor of the Exchequer what restrictions apply to the use of Post Office National Savings accounts by people who cannot sign their names due to mental impairment ; and what arrangements may be made for such people living in local authority care to have access to their savings in such accounts.
Mr. Nelson : National Savings ordinary and investment accounts can be opened for mentally disordered persons but only where a receiver has been appointed by the Court of Protection. The receiver will have full control over the management of the account.
Where an account has been opened and the despositor subsequently becomes mentally disordered, National Savings will describe to the applicant the Court of Protection facility but explain that where the balance in the account is £3,000 or less the director of savings has discretion to allow withdrawals from the account where it is considered in the patient's interest and the payment is being made to a proper person.
In cases where the account balance is greater than £3,000 the applicant will be referred to the Court of Protection but the director of savings will offer the facility of discretionary payments to meet immediate needs until a Court of Protection order is issued. Where there is any doubt in a particular case the matter can be raised with the Public Trust Office. The overriding consideration must be the interests of the patient.
Mr. Cousins : To ask the Chancellor of the Exchequer if he will estimate the tax revenues obtained from the derivatives and swaps markets in the United Kingdom ; how those revenues are obtained ; and whether he has the taxation of such markets under review.
Mr. Dorrell : It is not possible to attribute amounts of tax to specific types of income or gain because tax is charged on each business's total profits, including income and capital gains. Proposals to reform the tax treatment of financial instruments used by companies for managing interest rate and currency risk were announced in the Budget in November and are included in the present Finance Bill. These proposals will replace the current complex rules with a simple and coherent regime for taxing the profits and losses associated with these instruments.
Mr. Cousins : To ask the Chancellor of the Exchequer what steps he is taking to review the need for regulation of markets in derivatives and swaps ; and what steps he has taken to discuss these issues with the Government of the United States of America or with bank and securities regulators both in Britain and the United States of America.
Mr. Nelson : Regulation of markets in derivatives and of institutions involved in derivatives trading in the United Kingdom is the responsibility of the Securities and Investments Board and other bodies recognised under the Financial Services Act 1986, and of the Bank of England and the Building Societies Commission.
Representatives of the United Kingdom authorities regularly meet and discuss derivatives trading with their counterparts from other countries, including the United States, in fora such as
Column 45the Basle Committee on Banking Supervision and the International Organisation of Securities Commissions, as well as on a bilateral basis as appropriate. In addition, the Securities and Investments Board recently agreed, with the United States Securities and Exchange Commission and the Commodity Futures Trading Commission, a co- ordinated approach to the regulation of over-the-counter derivatives.
Mr. Matthew Taylor : To ask the Chancellor of the Exchequer what computer systems his Department have brought in, for what function and at what cost for each of the last five years ; and in each case whether the computer system is still in use.
Mr. Nelson : At the end of financial year 1991-92 the Treasury bought a building and asset management system by Ground Modelling Systems for £87,000. First-year maintenance and installation were included in this price. Maintenance in 1993-94 cost £10,000. The system is operational and usage is expanding as more classes of data are entered into it.
In 1992 the Treasury introduced a library system by Dynix. The capital cost of the system was £88,000 ; 80 per cent. was paid in 1991-92, and 20 per cent. upon completion in early 1992-93. Maintenance costs of the system were £4,000 in 1992-93 and £10,000 in 1993-94. The system is still fully operational and in use. At the end of the financial year 1993- 94 the Treasury invested £50, 000 in a DIP--document image processing- -pilot project. This system, which required a mixture of purchasing, leasing and utilising existing assets, is operational and is being used to assess the potential uses of DIP technology for the Department.
Mr. Dorrell : Excluding inspectors employed in specialist offices, the table sets out the total resource input into corporation tax technical review by inspectors working in the Inland Revenue's network of local offices for each of the years since 1991-92 :
|Man years ------------------------------ 1991-92 |745 1992-93 |780 1993-94 |749
The final figure for the year 1993-94 is not yet available. The figure quoted is based on resource usage for the nine months to January 1994 annualised. The final figure for the year is likely to be higher because the period from January to April tends to be a period when comparatively little annual leave is taken and more time is available for technical review.
Sir Richard Body : To ask the Chancellor of the Exchequer how much Her Majesty's Customs and Excise travellers charter cost to (a) print and (b) distribute ; and what analysis he has made of the value for money of publishing this charter.
Sir John Cope : The total cost of designing and printing the charter has been some £60,000. Commercial distribution has cost some £3,000, but internal distribution costs cannot be calculated without disproportionate expense.
The travellers charter sets standards of service to be provided and allows Customs to monitor and improve performance against those standards. The value of the charter cannot be measured in monetary terms. However, I consider it to make a worth while and effective contribution to our efforts to improve the standard of public services.
Mr. Matthew Taylor : To ask the Chancellor of the Exchequer how many collection staff were working for the Inland Revenue in each year since 1979, including 1993 ; and how many were working in the areas of (a) capital gains tax, (b) schedule D tax, (c) corporation tax, (d) PAYE and (e) national insurance contributions in each year.
Mr. Dorrell : Figures relating to the number of staff employed by the Inland Revenue are compiled on a financial year basis and the most recent year for which information is available is 1992-93. Excluding staff employed on central administration, the table sets out the total numbers of Inland Revenue staff engaged on the collection of tax within the Department's accounts offices, local office network, and enforcement offices for each year from 1978-79 to 1992-93 inclusive and the numbers working in the areas of (a) capital gains tax, (b) schedule D tax, (c) corporation tax, and (d) PAYE in each year. Under (d) the figures include staff used in collecting PAYE from employers and a relatively small number of schedule E tax assessments. As resources usage on national insurance contribution work is incidental to mainstream tax collection it is not separately recorded.
Year |Total |Capital |Schedule D |Corporation|PAYE |gains tax |tax |tax ------------------------------------------------------------------------------------ 1978-79 |11,041 |135 |5,873 |560 |4,473 1979-80 |10,648 |148 |5,701 |584 |4,215 1980-81 |10,222 |143 |5,529 |597 |3,953 1981-82 |10,124 |126 |5,747 |409 |3,842 1982-83 |10,221 |116 |5,673 |390 |4,042 1983-84 |10,171 |113 |5,570 |394 |4,094 1984-85 |9,339 |92 |4,674 |557 |4,016 1985-86 |8,443 |92 |4,596 |559 |3,196 1986-87 |7,989 |85 |4,472 |530 |2,902 1987-88 |7,795 |105 |4,250 |538 |2,902 1988-89 |7,866 |121 |4,243 |571 |2,931 1989-90 |7,879 |92 |4,243 |570 |2,974 1990-91 |7,846 |79 |4,410 |549 |2,808 1991-92 |8,187 |70 |4,376 |532 |3,209 1992-93 |8,410 |69 |4,730 |492 |3,119