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Personal Services Companies
Sir Brian Mawhinney: To ask the Chancellor of the Exchequer what factors account for the change from the initial estimate of annual forecast revenue receipts from IR35. [120329]
Dawn Primarolo: I refer the right hon. Member to the answer I gave to the hon. Member for Croydon, South (Mr. Ottaway) on 5 April 2000, Official Report, column 494W.
Mr. Paul Marsden: To ask the Chancellor of the Exchequer what estimate he has made of the additional amount of tax that will be collected in each of the next three years as a result of the introduction of IR35; and if he will make a statement. [120366]
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Dawn Primarolo: The estimate of extra tax and National Insurance Contributions generated from the pre-announced measure to tackle avoidance through the use of personal service companies is provided in Table A2.1 of the March 2000 "Financial Statement and Budget Report".
Mr. Paul Marsden: To ask the Chancellor of the Exchequer if he will make a statement on the development of a database of small businesses who breach IR35 rules. [120365]
Dawn Primarolo: We expect intermediaries involved in contracts affected by the legislation to comply with the rules, and the Inland Revenue will provide information and support to enable them to do so. Those who do not will be identified and reviewed by Inland Revenue compliance officers using existing compliance methods.
A separate database of intermediaries who breach the rules will not be needed.
Double Taxation Relief
Mr. Jack: To ask the Chancellor of the Exchequer (1) if he will publish details of the methodology used by the Inland Revenue to calculate the increase in tax yield that will result from the proposed changes in tax legislation as it affects offshore mixer companies; [120291]
- (2) if he will publish details of the calculations undertaken by the Inland Revenue to determine the level of tax yield arising from his proposals in the Finance Bill dealing with controlled foreign companies and tax mixing arrangements. [120290]
Dawn Primarolo: The expected yield from these changes as set out in Table A.13 of the 2000 "Financial Statement and Budget Report" is based on accepted methodology used by all Governments.
Mr. Jack: To ask the Chancellor of the Exchequer if he will make a statement on the feasibility of tax mixing onshore. [120288]
Dawn Primarolo: The issues concerning a system of onshore pooling were fully discussed in the paper "Double taxation relief for companies" published by the Inland Revenue in March 1999.
Mr. Jack: To ask the Chancellor of the Exchequer which G7 and OECD countries allow tax mixing to take place. [120285]
Dawn Primarolo: Just as overall tax systems vary from country to country, so do their respective mechanisms for relieving double taxation. It is not likely that any two countries will have double taxation relief systems that are identical. Direct comparisons are therefore of limited value and can be misleading.
Unfair Tax Competition
Mr. Redwood: To ask the Chancellor of the Exchequer what the policy of (a) the Government and (b) the European Commission is on the level of (i) income tax and (ii) corporation tax which should be treated as constituting unfair tax competition. [120359]
Dawn Primarolo: General rates of corporation tax and income tax do not constitute unfair tax competition.
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Family Benefits
Mr. Field: To ask the Chancellor of the Exchequer, pursuant to his answer of 3 April 2000, Official Report, column 340W, on family benefits, how many of those families claiming working families tax credit in each month since its introduction would have been entitled to family credit. [120617]
Dawn Primarolo: I refer my right hon. Friend to the answer I gave him on 19 April 2000, Official Report, column 580W.
VAT
Mr. Redwood: To ask the Chancellor of the Exchequer what the Government's policy is on the proposal for VAT to become an EU levied tax. [120356]
Dawn Primarolo: In July 1996 the Commission published a programme for creating a common system for EC VAT. The Government see no case for VAT reform along those lines, and such a system could not be agreed without the UK's consent.
Insurance
Dr. Cable: To ask the Chancellor of the Exchequer what plans he has to (a) repeal and (b) amend the Industrial Assurance Act 1923. [120211]
Miss Melanie Johnson: I refer the hon. Gentlemen to the answer given by the Financial Secretary to the Treasury to my hon. Friend the Member for Newcastle upon Tyne, Central (Mr. Cousins) on 18 April 2000, Official Report, column 438W.
Small Hotels (VAT)
Mr. Fearn: To ask the Chancellor of the Exchequer what assessment he has made of the advantages and disadvantages of introducing a graduated VAT threshold for small hotels. [120627]
Dawn Primarolo: Customs and Excise has been working with small businesses and representative bodies, including representatives of the tourist industry, to explore ways to ease the impact of VAT for all small businesses once their turnover reaches the VAT registration threshold, including graduated VAT relief.
Family Statistics
Mr. Gerald Howarth: To ask the Chancellor of the Exchequer what is the life expectancy of someone whose parents have (a) been divorced and (b) remained married. [120668]
Miss Melanie Johnson: The information requested is not available.
Retired People
Mrs. Lait: To ask the Chancellor of the Exchequer what percentage of people retiring in (a) 1985, (b) 1990, (c) 1995, (d) 1996 (e) 1997, (f) 1998 and (g) 1999 have taken a tax-free lump sum from (i) defined contribution schemes and (ii) defined benefit schemes; and how much tax revenue was forgone as a result. [120361]
Miss Melanie Johnson: The information requested is not available.
2 May 2000 : Column: 33W
Child Support
Mr. Woolas: To ask the Chancellor of the Exchequer what plans he has to include CSA payments in calculating eligibility for working families tax credit. [120656]
Dawn Primarolo: Maintenance payments, claimed through the CSA, are not currently included in calculating eligibility for the Working Families Tax Credit. There are no plans at present to alter this treatment.
Tax Law Rewrite Project
Mrs. Lawrence: To ask the Chancellor of the Exchequer what further progress has been made on the Tax Law Rewrite project. [120795]
Dawn Primarolo: I am pleased to be able to tell the House that the Tax Law Rewrite project is continuing to make very good progress. The Inland Revenue have today published the project's tenth Exposure Draft, containing draft rewritten clauses on trading income of individuals. Copies of the Exposure Draft will be placed in the Libraries of the House.
Climate Change Levy
Dr. Starkey: To ask the Chancellor of the Exchequer what is the estimated cost of extending the 80 per cent. discount on the climate change levy to horticulture for the financial year 2001-02. [119916]
Mr. Timms: The 80 per cent. discount on the climate change levy is available only to sectors covered by the Integrated Pollution Prevention and Control Directive (IPPC) who enter into negotiated agreements to deliver additional improvements in energy efficiency. This reflects the additional regulatory burden on such firms, who must implement all cost-effective energy saving measures in order to qualify for a discount.
The horticulture industry is not covered by IPPC and is therefore not eligible for the 80 per cent. discount. Nevertheless, the Government recognise the unique position of horticulture as an energy intensive sector exposed to international competition, and where there is scope for energy savings to be made.
The Government therefore intend to give a package of support from the £50 million 'energy efficiency' fund to improve the sector's energy efficiency, and have included thermal screens, which are used in glasshouses, in the list of technologies eligible for the enhanced capital allowance. And the Government intend to offer a temporary 50 per cent. discount to protect the competitiveness or horticulture firms while these energy efficiency measures take effect.
2 May 2000 : Column: 34W
Final decisions on the exact design of the package of support to horticulture have yet to be taken. It is therefore not possible to quantify exactly the cost of the package.
Mr. Jack: To ask the Chancellor of the Exchequer if he will place in the Library the economic impact studies which he has conducted on the climate change levy. [120287]
Mr. Timms: Copies of the Regulatory Impact Assessment of the climate change levy are available in the Library.
Mr. Welsh: To ask the Chancellor of the Exchequer what estimate he has made of the cost to local authorities of the climate change levy with particular reference to (a) street lighting, (b) leisure services and (c) housing; and what support he plans to make available to local authorities to meet such costs. [120630]
Mr. Timms: The Government believe that all sectors of the economy must play their part in helping meet the UK's targets for reducing greenhouse gas emissions.
It is not possible to say with precision what the effects of the climate change levy on local authority services will be since that will depend on, among other things, future energy use in this sector. However, local authorities will be overall net gainers from the climate change levy package, since they will gain more from the associated cut in employer NICs than they will pay in climate change levy.
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