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Corporation Tax
Mr. Maclean: To ask the Chancellor of the Exchequer what estimate he has made of the number of businesses which will be affected by the introduction of quarterly payments of corporation tax; and what will be the average cost per business. [70652]
Dawn Primarolo
[holding answer 15 February 1999]: The introduction of quarterly payments of corporation tax will affect some 20,000 companies. This measure was part of a package of measures introduced in the 1998 Budget which included the abolition of Advanced Corporation Tax (ACT) and a 1 per cent. cut in the main rate of corporation tax from April 1999. After a four year transition period, the effect for these companies of introducing quarterly payments, abolishing ACT and the 1 per cent. rate cut is likely on average to be a reduction in liability.
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Mr. Maclean:
To ask the Chancellor of the Exchequer what estimate he has made of (a) the number of businesses which will be affected by the 1998 Budget announcement of withdrawal of cash basis for professional businesses and (b) the average cost per business. [70653]
Dawn Primarolo
[holding answer 15 February 1999]: Inland Revenue has no central record of which businesses are on the cash basis, and no estimate of the total number of such businesses. It is therefore not possible to estimate an average cost per business.
Mr. Maclean:
To ask the Chancellor of the Exchequer (1) how many businesses were affected by the 1997 Budget announcement which prohibited the (a) transfer of unused past allowances and (b) acceleration of capital allowances; and if he will estimate the average cost to each affected business; [70685]
(3) how many businesses were affected by the 1997 Budget announcement which blocked company purchase schemes; and if he will estimate the average cost to each affected business; [70699]
(4) what estimate he has made of the number of businesses which will be affected by the change in rules on (a) capital gain buying and (b) controlled foreign companies which were announced in the 1998 Budget; and what will be the average cost per business. [70687]
Dawn Primarolo
[holding answer 15 February 1999]: In respect of all but the 1998 changes obliging companies to include amounts chargeable under the controlled foreign company (CFC) rules in their self assessment tax returns the measures referred to are aimed at stemming the loss of tax through avoidance devices and possibly outright evasion, rather than being tax raising. The relevant tax yields in the respective Budget Reports reflect the direct effects of the measures within the existing level of activity. The measures protect the Exchequer against greater losses in the future. Accurate estimates of the number of businesses affected directly at the time action was taken, or who might in future have been involved if action had not been taken, are not available.
In respect of the CFC change relating to self assessment, it is estimated that 1,500 groups will be affected by the new legislation and that the total compliance cost will be under £10 million in the first year. Recurrent costs will be considerably less than initial costs. The change is estimated to raise £50 million in a full year.
Mr. Gareth R. Thomas:
To ask the Chancellor of the Exchequer if he will make a statement on Government policy on the proposed EU Energy Products Directive as it affects the biofuel industry. [71397]
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Ms Hewitt:
The Government's position on the Energy Products Directive is that we favour some aspects of the proposal, such as higher minimum rates of tax on road fuels. However, we could not accept, for social policy reasons, any obligation to impose new taxes on domestic fuel and power. Our attitude to new taxes on business use of energy will depend on the decisions we take in the light of Lord Marshall's report on 'Economic Instruments and the Business Use of Energy', which was published on 3 November 1998.
Under the terms of the draft Directive, Member States may introduce optional exemptions from tax or reduced rates for certain types of energy product and to products put to particular uses. This applies to energy products used in pilot projects for the development of more environmentally friendly products, or in relation to fuels from renewable sources of energy such as solar, wind and geothermal power and biofuels.
Mr. Chaytor:
To ask the Chancellor of the Exchequer if he will provide data for each of the last 20 years on non-foreign direct involvement private capital inflows into the United Kingdom; and if he will make a statement on their quantifiable effect on the balance of payments. [71812]
Ms Hewitt
[holding answer 16 February 1999]: The information requested falls within the responsibility of the Director of the Office for National Statistics. I have asked him to reply.
Letter from Tim Holt to Mr. David Chaytor, dated 22 February 1999:
Ann Clwyd:
To ask the Chancellor of the Exchequer if he will investigate reports that two British companies have transported arms in breach of UN embargoes on arms exports to Sierra Leone and the Congo. [71566]
Dawn Primarolo
[holding answer 16 February 1999]: The investigation and prosecution of any alleged breaches of UK legislation implementing UN arms embargoes is a matter for the Commissioners of Customs and Excise. Anyone in possession of information which might suggest offences have been committed should make the material available to them.
Mr. Drew:
To ask the Chancellor of the Exchequer in what circumstances Customs and Excise are permitted to make a private arrangement with an individual caught smuggling rather than pursuing the full legal process. [70816]
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Dawn Primarolo
[holding answer 16 February 1999]: Under section 152(a) of the Customs and Excise Management Act 1979 the Commissioners may "compound" any proceedings for an offence under the Customs and Excise Acts i.e. accept a monetary penalty in lieu of prosecution. The decision whether to prosecute or compound proceedings is taken on the merits of each case. Offers to compound are made only if there is sufficient evidence to support criminal proceedings. Where an offer to compound is refused it is the policy of the Commissioners to prosecute for the alleged offence.
Mr. Ruffley:
To ask the Secretary of State for Trade and Industry if he will list (a) the London barristers' chambers and (b) the London solicitors' firms that have performed services for his Department (i) since 1 May 1997 and (ii) in the equivalent period preceding that date, indicating the remuneration paid in each particular case. [70037]
Mr. Byers
[holding answer 8 February 1999]: The remuneration paid to London barristers and solicitors by this Department is not collated or held centrally, and the information requested could only be obtained at disproportionate cost.
My right hon. and learned Friend the Attorney-General appointed Phillip Sales as First Junior Treasury Counsel (Common Law) and Jonathan Crow as First Junior Treasury Counsel (Chancery) to advise and represent the Government in their important civil cases. In addition, the Attorney-General maintains at present two London panels of junior Counsel whom departments are expected to use for the government's civil litigation. The panels currently comprise 103 barristers from 42 different sets of chambers. The Attorney-General will shortly appoint a third panel of very junior barristers. The Attorney- General's individual nomination is required before a barrister who is not on one of the approved panels can be instructed to appear for the Government in litigation.
Departments may use firms of solicitors in addition to the Treasury Solicitor and their departmental legal advisers, for example where the relevant expertise lies in the private sector. The relationship is subject to the usual confidentiality which operate between lawyer and client.
Mr. Redwood:
To ask the Secretary of State for Trade and Industry what impact on business costs (a) the minimum wage, (b) the Working Time Regulations and (c) the Fairness at Work White Paper proposals have had to date; and what estimate he has made of the annual impact when fully implemented. [69816]
Mr. Byers:
Regulatory impact assessments have been published for each of these measures and are available in the Library of the House.
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(2) how many businesses were affected by the 1997 Budget announcement that dividends will be taxed as trading profits; and if he will estimate the average cost per business; [70686]
As Director of the Office for National Statistics (ONS), I have been asked to reply to your recent parliamentary question on non-FDI private capital inflows into the UK.
Estimates for non-FDI private capital inflows into the United Kingdom can be derived from the 1998 edition of "United Kingdom Balance of Payments: The Pink Book". The data in the Pink Book are available on the ONS database, which can be accessed by the Library. Capital inflows form part of the Financial Account within the Balance of Payments.
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