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Married Person's Tax Allowance

Mr. MacShane: To ask the Chancellor of the Exchequer what would be the total cost in lost revenue of introducing a married person's tax allowance based on (a) £500 per married person, (b) £750 per married person and (c) £1,000 per married person. [3901]

Mr. Jack: The cost would depend on whether the proposed allowance replaced or was in addition to the existing married couple's allowance and whether it was available at marginal rates or at a fixed rate.

Parent Tax Allowance

Mr. MacShane: To ask the Chancellor of the Exchequer what would be the impact on revenue of introducing a tax allowance for a nominated parent of (a) £200 per child, (b) £500 for a second and subsequent children and (c) £200 for a first and second child and £500 for successive children. [3903]

Mr. Jack: Estimated full-year costs at 1996-97 income levels are given in the table. The assumption has been made that the nominated parent is the husband, allowances are given at marginal tax rates and any unused allowances cannot be transferred to the wife. Lone parents are also assumed to be entitled to these allowances.

Level of child tax allowance (£)
First childSecond childThird/fourth childCost in a full year(6) £ million
(a)200200200450
(b)200500500750
(c)200200500530

(6) Based on a projection of the 1994-95 Survey of Personal Incomes.


Exchange Rates

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer (1) what proposals he has for checking the rise in the pound; [4752]

Mrs. Angela Knight: The Government recognise the value of a stable exchange rate but do not have a target for sterling. The exchange rate is only one of many factors that has to be taken account of in policy decisions.

Data on sterling exchange rates against other EU currencies can be found in "Main Economic Indicators", which is published monthly by the OECD.

Income Tax Cuts

Ms Primarolo: To ask the Chancellor of the Exchequer what estimate he has made of the reduction in tax paid per year in cash terms, and as a percentage of the total gross annual income, for each income decile group, resulting from a 1p reduction in the standard rate of income tax. [4467]

19 Nov 1996 : Column: 500

Mr. Jack [holding answer 18 November 1996]: Information on the effect of a 1p reduction in the basic rate of income tax at 1996-97 income levels is given in the table.

Group of taxpayers per cent.Reduction in income tax £ millionReduction as a percentage total income per cent.
Top 105200.4
11-203800.6
21-302700.5
31-401900.5
41-501300.4
51-60800.3
61-70400.2
71-8010under 0.1
81-9000
Bottom 1000

Outstanding Tax

Ms Primarolo: To ask the Chancellor of the Exchequer how much is owed to the Inland Revenue in uncollected (a) income tax, (b) corporation tax, (c) inheritance tax, (d) capital gains tax and (e) VAT. [4470]

Mr. Jack [holding answer 18 November 1996]: I refer the hon. Member to the reply given to the hon. Member for Gordon (Mr. Bruce) on 13 November at column 228 in respect of figures for uncollected income tax, corporation tax and VAT.

The figures for inheritance tax and capital gains tax are given in the table. In this question, "uncollected" has been taken to mean "uncollected and subsequently written off or remitted".

Inland Revenue collection accounts are drawn up each year to the end of October, and the table therefore shows the amounts as at the end of October 1995--the latest date for which figures are available. The information can also be found in the board of Inland Revenue's annual report.

Type of taxAmount remitted/written off (rounded to nearest £ million) October 1995
Inheritance tax2
Capital gains tax34

With the exception of small amounts remitted or written off in respect of Development Land Tax and miscellaneous other duties, and subject to rounding, these two items represent the amounts included under 'other taxes' in the previous answer.


Inland Revenue Computers

Mr. Madden: To ask the Chancellor of the Exchequer what physical protection and contractual safeguards he has arranged to prevent breach of taxpayers' confidentiality by software suppliers allowed emergency access from terminals in America and Australia to the Inland Revenue's computer system. [1978]

Mr. Jack [holding answer 4 November 1996]: I refer to the reply I gave to the hon. Member for Bristol, South (Ms Primarolo) on 13 November at columns 226-27.

19 Nov 1996 : Column: 501

Mr. Campbell-Savours: To ask the Chancellor of the Exchequer what alternatives to overseas support for the protection of Inland Revenue data against operational risk of a shutdown or slowdown of the self-assessment system were examined by Ministers before revision of the Oracle contract. [1635]

Mr. Jack [holding answer 11 November 1996]: I considered all alternative technical support arrangements, but none provided the degree of protection that is required.

Mr. Campbell-Savours: To ask the Chancellor of the Exchequer if Inland Revenue data can be accessed by Oracle facilities overseas before legal or other contractual safeguards concerning the security or holding of that data have been contractually agreed between Oracle and persons representing the Inland Revenue. [1637]

Mr. Jack [holding answer 11 November 1996]: No.

Mr. Campbell-Savours: To ask the Chancellor of the Exchequer on what date the computerised environment for self-assessment systems will be fully operational and in what way policy has recently changed with regards to security aspects of the holding of Inland Revenue self-assessment data. [1638]

Mr. Jack [holding answer 11 November 1996]: The new self-assessment computer system is being brought in in stages, as required, over a period of some 18 months. As regards the security aspects, I refer to the reply I gave the hon. Member for Bristol, South (Ms Primarolo) on 13 November at columns 226-27.

Mr. Campbell-Savours: To ask the Chancellor of the Exchequer for what reasons it is not possible to require under the contract between Oracle and the Inland Revenue adequate back-up facilities for fault correction in the computerised environment for self-assessment. [1639]

Mr. Jack [holding answer 11 November 1996]: Oracle is supplying, under contract to Electronic Data Services Ltd., the Inland Revenue's information technology partner, full back-up support for the self-assessment computer system.

Mr. Campbell-Savours: To ask the Chancellor of the Exchequer what assessment he has made of the effect on the security of information systems of the EDS-Oracle contract with the Inland Revenue. [1642]

Mr. Jack [holding answer 12 November 1996]: I refer to the reply I gave on 13 November to the hon. Member for Bristol, South (Ms Primarolo) at columns 226-27.

Mr. Campbell-Savours: To ask the Chancellor of the Exchequer what assurances he has received from (a) EDS and (b) Oracle as to the security of information held on the Inland Revenue database when transmitted outside of the United Kingdom. [1643]

Mr. Jack [holding answer 12 November 1996]: I refer to the reply I gave on 13 November to the hon. Member for Bristol, South (Ms Primarolo) at columns 226-27.

Mr. Campbell-Savours: To ask the Chancellor of the Exchequer if subcontractors and contractors otherwise associated with EDS or Oracle will be subject to the same contractual terms as EDS or Oracle themselves in the protection and security of the Inland Revenue database. [1645]

19 Nov 1996 : Column: 502

Mr. Jack [holding answer 12 November 1996]: Yes.

DEFENCE

Gaul Trawler

Mr. Randall: To ask the Secretary of State for Defence what Royal Navy personnel were present on the trawler, Gaul, during the six months before her disappearance off north cape; and if he will make a statement. [4364]

Mr. Soames: My Department has no record of Royal Navy personnel ever having been aboard the trawler Gaul.

There has for some time been speculation about the loss of the Gaul in February 1974 and allegations that she was involved in intelligence-gathering activities. My Department has no record of the Gaul, under that name or her earlier name, Ranger Castor, ever having been engaged on any task for the Royal Navy, or any evidence to call into doubt the findings of the independent investigation which concluded that she foundered and sank with all hands in heavy seas.


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