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Gold (Restitution)

Mr. Rooker: To ask the Secretary of State for Foreign and Commonwealth Affairs what was the outcome of the latest discussions by the member Governments of the Tripartite Commission for the Restitution of Monetary Gold regarding the residue of gold and its possible distribution to individuals. [12996]

Mr. David Davis: The Tripartite Commission for the Restitution of Monetary Gold last met in Brussels on 17 December. In the light of suggestions from Jewish organisations that part of the commission gold be made available to benefit individual victims of Nazism, the tripartite Governments have decided to continue the technical and administrative preparations for the final distribution of the residue of gold, but not actually to begin the distribution. One factor that the tripartite Governments will take into account when considering the final distribution of gold will be the outcome of research currently being undertaken by the US presidential task force on Nazi gold, and separately by the Foreign and Commonwealth Office, into the origin of the commission gold pool.

British Residents Overseas

Mr. Patrick Thompson: To ask the Secretary of State for Foreign and Commonwealth Affairs how many British citizens are currently resident in other European Union countries. [13165]

Dr. Liam Fox: According to our latest estimates, on 31 December 1995, there were 960,000 British citizens resident in other European Union countries.

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TREASURY

Venture Capital Trusts

Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer what is his estimate of the revenue loss to the Exchequer in (a) 1997-98 and (b) 1998-99 from tax reliefs on venture capital trusts. [12790]

Mr. Jack: Total tax relief for venture capital trusts is tentatively estimated to cost about £50 million for 1997-98. The cost for 1998-99 is not available, but would depend on future levels of take-up and rates of investment return.

Income Tax

Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer if he will estimate the (a) first year and (b) full year cost of raising the personal income tax allowances in 1997-98 by (i) £175, (ii) £190 and (iii) £200; and if he will estimate in each case the number of individuals who would cease to be liable to pay income tax as a consequence of such a change. [12747]

Mr. Jack [holding answer 27 January 1997]: Available information is given in the table.

Increase in non-aged and aged personal tax allowances £	Full year cost at 1997-98 income levels(2) £ million	First year cost at 1997-98 income levels £ million	Number of taxpayers taken out of income tax (thousands)
175	1,050	790	400
190	1,150	850	440
200	1,200	900	470

(2) Based on the Budget forecast.

Mr. Bruce: To ask the Chancellor of the Exchequer if he will estimate the impact on revenue of ending the tax reliefs on (a) new personal equity plans and (b) new tax-exempt special savings accounts in (i) 1997-98 and (ii) 1998-99. [12796]

Mr. Jack [holding answer 27 January 1997]: The reduction in the cost of tax relief from not permitting any further investment in personal equity plans is tentatively estimated at £40 million for 1997-98.

The estimated reduction in the cost of income tax relief from not allowing new tax-exempt special savings accounts is about £50 million for 1997-98. The estimated reduction in the cost of tax relief from not permitting any further investment in TESSAs is approximately £80 million for 1997-98.

These estimates do not allow for any behavioural consequences as a result of changes to these tax reliefs, and follow the conventional assumption that the current interest rates remain unchanged.

Estimates for later years are not available, but in each case the effect would build up over time.

Mr. Bruce: To ask the Chancellor of the Exchequer if he will estimate the additional revenue which would be raised by the Exchequer in (a) 1997-98 and (b) 1998-99 by introducing a new marginal tax rate of 50 per cent. on

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taxable incomes of £100,000 per annum and over; and what is his estimate of the number of individuals who would be affected by such a policy. [12746]

Mr. Jack [holding answer 27 January 1997]: The estimated full year yield at 1997-98 income levels of introducing a new rate of 50 per cent. on taxable incomes above £100,000 is £1.4 billion. The yield includes the consequential effects on the yield of capital gains tax after allowing for likely changes in the volume of disposals. It does not take account of any other behavioural effects which might result from the introduction of the new rate of tax. About 140,000 taxpayers would be affected.

The yield for future years would depend on levels of income, tax reliefs and allowances in those years.

Mr. Bruce: To ask the Chancellor of the Exchequer if he will estimate the additional revenue which would be raised by the Exchequer in (a) 1997-98, (b) 1998-99 and (c) 1999-2000 by increasing the basic rate of tax by one penny in the pound. [12745]

Mr. Jack [holding answer 27 January 1997]: The estimated full year yield would be about £1.7 billion at 1997-98 income levels. The yields for future years would depend on the levels of incomes, tax reliefs and allowances in those years.

Mr. Gordon Prentice: To ask the Chancellor of the Exchequer what estimate he has made of the additional revenues which would be generated by a top rate of income tax of (a) 50 per cent. and (b) 60 per cent. on incomes over (i) £50,000, (ii) £60,000, (iii) £70,000, (iv) £100,000 and (v) £150,000. [12377]

Mr. Jack: Estimated full year yields at 1997-98 income levels are given in the table. The yields include the consequential effects on the yield of capital gains tax after allowing for likely changes in the volume of disposals. They do not take account of any other behavioural effects which might result from the introduction of such changes. It is not possible to provide a reliable estimate of the effect of introducing the higher tax rates for taxable incomes over £100,000.

	Full year revenue yield at 1997-98 income levels Top rate
Lower limit of taxable income £	50 per cent. £ billion	60 per cent. £ billion
50,000	2.7	5.4
60,000	2.3	4.5
70,000	2.0	3.9
100,000	1.4	2.7

Pensioners (Tax)

Sir Andrew Bowden: To ask the Chancellor of the Exchequer what estimate he has made of the number and proportion of people aged 65 years or over who will (a) not pay any tax, (b) pay tax at 20 per cent. only, (c) pay tax at 23 per cent. and (d) pay tax at 40 per cent. in 1997-98. [12993]

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Mr. Jack: Latest estimates for 1997-98 are given in the table. The estimates are based on information projected from the 1994-95 survey of personal incomes and population estimates from the Government Actuary's Department; they are therefore provisional.

Individuals aged 65 or over	Number (millions)	Percentage
Not liable to income tax	6.20	67
Lower rate	1.75	19
Basic rate	1.20	13
Higher rate	0.15	1
All	9.30	100

Mortgage Interest Tax Relief

Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer what is his estimate of the number of new claims for mortgage interest tax relief from first time claimants in the most recent year for which figures are available. [12793]

Mr. Jack [holding answer 27 January 1997]: About 10.5 million single people or married couples benefited from mortgage interest relief in 1995-96. An estimated 400,000 of the beneficiaries were first time buyers with new mortgages.

Mr. Bruce: To ask the Chancellor of the Exchequer what is his policy in respect of future levels of mortgage interest tax relief at source over the next five financial years; and if he will make a statement. [12795]

Mr. Jack [holding answer 27 January 1997]: As my right hon. and learned Friend the Chancellor of the Exchequer said in his 1995 Budget speech, interest relief will remain unchanged for the lifetime of this Parliament. Beyond that, the level of mortgage interest relief is a matter to be considered each year in the Budget.

Capital Gains Tax

Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer if he will estimate the revenue which would be raised by the Exchequer in (a) 1997-98 and (b) 1998-99 by ending capital gains tax reinvestment relief. [12744]

Mr. Jack [holding answer 27 January 1997]: The cost of capital gains tax reinvestment relief is tentatively estimated to be £65 million for 1997-98. Costs for later years would depend on future levels of capital gains and qualifying investment. In practice the yield from withdrawing the relief may be significantly different to the existing cost due to changes in taxpayers' behaviour.

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