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Children's Tax Credit
Mr. Gibb: To ask the Chancellor of the Exchequer if the children's tax credit allowance will be available for use against investment income. [76657]
Dawn Primarolo [holding answer 15 March 1999]: The children's tax credit will reduce the income tax liability of the person claiming the credit up to a set amount. In 2001-02, that amount will be £4,160 at 10 per cent. It will be available to be set against income tax due on earnings and on other sources of income.
Tax Investigation Notices
Mr. Gibb: To ask the Chancellor of the Exchequer how many investigation notices dated 31 January 1999 were issued by the Inland Revenue concerning 1996-97 tax affairs; and if he will make a statement on the implications for revenue collection. [75413]
Dawn Primarolo [holding answer 9 March 1999]: A small number of inquiry notices--around 100--were issued on 31 January 1999. In any case where an inquiry notice concerning the Self Assessment tax return for 1996-97 was issued, local tax offices have been advised to inform taxpayers and their agents and to discontinue the inquiry.
Corporation Tax
Mr. Jenkins:
To ask the Chancellor of the Exchequer if he will estimate the number of businesses in
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(a) Tamworth and (b) Staffordshire who will benefit from the reduction in corporation tax scheduled for April 1999; and if he will make a statement. [75657]
Dawn Primarolo
[holding answer 9 March 1999]: Nationally about 400,000 companies have a corporation tax liability each year. All will benefit from the cuts in the main and small companies' rates of corporation tax scheduled for April 1999, including an estimated 2,200 of the companies dealt with by the Walsall tax office, which covers Tamworth, and 4,000 of the companies dealt with by tax offices in Staffordshire. Other tax-paying companies trading in these areas will also benefit.
The 1 per cent. reduction in corporation tax rates scheduled for April 1999 builds on the 2 per cent. reduction introduced by this Government from April 1997 and will promote enterprise and encourage investment. The United Kingdom's main rate of corporation tax is the lowest of any major industrialised country.
Mr. Trickett:
To ask the Chancellor of the Exchequer (1) what estimate he has made of how many businesses in the Wakefield District will benefit from changes in corporation tax which were (a) agreed and (b) proposed since 1 May 1997; [74039]
Dawn Primarolo:
Nationally about 400,000 companies have a corporation tax liability each year. All will benefit from the cuts in the main and small companies' rates of corporation tax, including an estimated 700 of the companies dealt with by the Wakefield tax office and 400 of the companies dealt with by the Pontefract tax office which covers Hemsworth. Other tax-paying companies trading in these areas will also benefit.
Mr. Ennis:
To ask the Chancellor of the Exchequer how many businesses in Barnsley and Doncaster will benefit from the proposed reduction in corporation tax scheduled for April. [73371]
Dawn Primarolo:
Nationally about 400,000 companies have a corporation tax liability each year. All will benefit from the cuts in the main and small companies' rates of corporation tax, including an estimated 1,500 of the companies dealt with by the Barnsley and Doncaster tax offices. Other taxpaying companies trading in the Barnsley and Doncaster areas will also benefit.
Mr. Loughton:
To ask the Chancellor of the Exchequer if he will estimate (a) the number of people liable for CGT and (b) the total revenue raised if the individual allowance threshold was raised to (i) £10,000, (ii) £13,600 and (iii) £20,000. [R] [74064]
Dawn Primarolo
[holding answer 2 March 1999]: The March 1999 Budget proposes an Annual Exempt Amount of £7,100 for the tax year 1999-2000, at which level it is projected that 200,000 taxpayers will have capital gains tax liabilities of £3.6 billion. These estimates exclude companies as their capital gains are charged to corporation tax. The effect of raising the Annual Exempt Amount to the specified levels is shown in the table.
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(2) what estimate he has made of how many businesses in Hemsworth constituency will benefit from changes in the rate of corporation tax which were (i) agreed and (ii) proposed since 1 May 1997. [74040]
| Change to | ||
|---|---|---|
| Annual Exempt Amount | Number of taxpayers (thousand) | Capital gains tax liabilities (7) (£ million) |
| £10,000 | -55 | -90 |
| £13,600 | -90 | -180 |
| £20,000 | -125 | -310 |
(7) These estimates take into account the likely effect on capital gains tax yield of changes to volume of disposals in the year brought about by changes to taxpayer behaviour
Mr. Loughton: To ask the Chancellor of the Exchequer what is his estimate of the amount of CGT revenue which will be collected in respect of the financial year 1998-99; and what will be the cost of collection. [R] [74062]
Dawn Primarolo [holding answer 2 March 1999]: The latest available information is given in the table. Information on the cost of collecting Capital Gains Tax in 1998-99 is not available.
| Year | Net receipts (8) | Cost of collection (9) |
|---|---|---|
| 1997-98 | 1,453 | 33.4 |
| 1998-99 | (10)2,400 | (11)-- |
(8) Excludes tax on gains of companies which are charged to Corporation Tax
(9) Relates mainly to the costs arising from gains to individuals and trustees but some other costs (mainly of land valuations for companies) cannot be separately identified and are included in the collection costs of capital gains tax
(10) Provisional estimate
(11) Not available
Stamp Duty (Shares)
Mr. Loughton: To ask the Chancellor of the Exchequer what discussions he has had with his European colleagues about rates of stamp duty on shares in other EU states. [R] [74061]
Ms Hewitt [holding answer 2 March 1999]: My right hon. Friend has frequent discussions with his EU counterparts covering a wide range of matters.
Mr. Loughton: To ask the Chancellor of the Exchequer if he will estimate the amount of revenue (i) collected in financial years (a) 1996-97 and (b) 1997-98 and (ii) projected for 1998-99 in respect of stamp duty on shares; and what was the cost of collection. [R] [74065]
Ms Hewitt [holding answer 2 March 1999]: The figures are as follows:
| Year | Net receipts | Cost of collection |
|---|---|---|
| 1996-97 | 1,408 | 1.0 |
| 1997-98 | 1,960 | 1.4 |
| 1998-99 (provisional estimate) | 2,600 | 1.4 |
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Premium Bonds
Mr. Field: To ask the Chancellor of the Exchequer what has been the maximum allowed holding of Premium Bonds in each year since 1969. [75944]
Ms Hewitt [holding answer 11 March 1999]: The maximum holding of Premium Bonds in 1969 was £1,250. Since then it has been increased as follows:
| £ | |
|---|---|
| 1 April 1971 | 2,000 |
| 11 September 1978 | 3,000 |
| 21 April 1980 | 10,000 |
| 13 April 1993 | 20,000 |
Lobbyists
Mr. Flynn: To ask the Chancellor of the Exchequer if he will make a statement on the role of professional lobbyists in formulating policy in his Department. [74367]
Ms Hewitt [holding answer 4 March 1999]: Any contacts with lobbyists by Ministers and civil servants in this Department are conducted in accordance with the "Ministerial Code" and "Guidance for Civil Servants: Contact with Lobbyists."
Fiscal Policy
Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer when he plans to publish the paper "Fiscal Policy: Public Finances and the Cycle", referred to in the November 1998 Pre-Budget report (Cm 4076), paragraph B24; and if he will make a statement. [75353]
Ms Hewitt [holding answer 8 March 1999]: The paper "Fiscal Policy: Public Finances and the Cycle" was published with other documentation on Budget day, 9 March 1999.
KPMG
Mr. Ruffley: To ask the Chancellor of the Exchequer if he will list the services that KPMG have performed for his Department (a) since 1 May 1997 and (b) in the corresponding period prior to 1 May 1997, indicating the remuneration made in each case. [72014]
Dawn Primarolo [holding answer 22 February 1999]: The services carried out by KPMG for HM Treasury during the periods requested are as follows:
| £000 | |
|---|---|
| Services provided since 1 May 1997 | |
| Windfall Tax Consultancy | 13 |
| Review of National Savings | 6 |
| General consultancy and secondments | 26 |
| Services provided between April 1996 and April 1997 | |
| General consultancy and secondments | 69 |
| Study on possibility of market testing forecasting function | 39 |
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