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Mortgages

Ms Abbott: To ask the Chancellor of the Exchequer what recent consultations he has had with (a) the Financial Services Authority, (b) the Department of Trade and Industry, (c) the Office of Fair Trading, (d) the European Commission and (e) consumer groups about the definition

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of a mortgage; and if he will list the (i) consumer groups and (ii) others he is consulting about the definition of a mortgage. [129263]

Miss Melanie Johnson: I refer my hon. Friend to the announcement made on 27 January 2000, Official Report, columns 262-64W, of the Government's decision on the regulation of mortgages.

That decision was the outcome of a consultation exercise that gathered a great deal of evidence, including that from borrowers and consumer groups, about what can go wrong with mortgage lending.

The proposals announced by the Government were designed specifically to address these problems and put the consumer in control.

Following the announcement of the Government's decision, the Treasury has received helpful views on the definition of a mortgage, and is also drawing on the expertise of the Financial Services Authority and other Government Departments. The Government will consult on any proposed legal definition at the appropriate time.

Severn Bridges Tolls (VAT)

Mr. Edwards: To ask the Chancellor of the Exchequer if he will make a statement about EU proposals to impose VAT on tolls for the Severn Bridges. [129269]

Dawn Primarolo: The Government are awaiting the judgment of the European Court of Justice, due on 12 September, on whether or not VAT should be levied on toll charges. An appropriate announcement will be made when this judgment has been studied.

National Insurance

Mr. Webb: To ask the Chancellor of the Exchequer what has been the policy since 1989 on writing annually to those of his Department's staff who are paying reduced rates of National Insurance contributions, reminding them of the rules governing the payment of reduced rates, as recommended in the Inland Revenue guidance note on reduced rate National Insurance contributions for married women. [129478]

Dawn Primarolo: The Inland Revenue Guide to Employers states that employers may consider it worthwhile to have arrangements in place to issue a periodic reminder to married women employees for whom they hold a certificate of election, advising them of the need to tell the employer if their marriage ends by divorce or annulment or that they are no longer entitled to pay reduced rate National Insurance contributions. All of my Departments with such employees follow this advice either by an annual notice in their staff bulletins or in individual letters issued annually.

IR35

Mr. Ottaway: To ask the Chancellor of the Exchequer when he last revised the expected revenue yield from IR35; and what the revised estimate is. [129733]

Dawn Primarolo: I refer the hon. Member to Table A2.1 of this year's Financial Statement and Budget Report.

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Children's Tax Credit

Mr. Sarwar: To ask the Chancellor of the Exchequer how many families he expects to benefit from implementation of the Children's Tax Credit in (a) Scotland and (b) the United Kingdom. [129925]

Dawn Primarolo: It is estimated that about five million families in the UK will benefit from the introduction of the Children's Tax Credit, of which about 400,000 are in Scotland.

Redundancy Pay

Paddy Ashdown: To ask the Chancellor of the Exchequer for what reasons money received on redundancy as pay in lieu of notice and holiday pay is treated for tax purposes as income for the tax year in which it is paid, in circumstances where it relates to a period of time within the following tax year; and if he will make a statement. [128182]

Dawn Primarolo [holding answer 5 July 2000]: The earnings of all employees and directors, including money received on redundancy as pay in lieu of notice and holiday pay, are taxed in the year in which they are received instead of the year for which they were earned. This way of taxing earnings was introduced in the 1989 Budget in order to simplify the method of assessment. There are no current plans to change this treatment.

Tax treatment of redundancy payments

Payments made solely to compensate for an individual being made redundant are taxable above a £30,000 exemption limit.

Tax treatment of payments in lieu of notice and holiday pay

Payments in lieu of notice are taxable in full if they are provided for in the contract of employment or if the employer customarily pays them. Other payments in lieu of notice are treated in the same way as redundancy payments, i.e. taxable above a £30,000 exemption limit. Holiday pay owed is taxable in full.

All of the above payments are taxed in the year in which they are received. Those payments which are taxable in full have been taxed in this way since 1989 and those payments which are taxable above a £30,000 exemption limit--i.e. redundancy payments and some payments in lieu of notice--have been taxed in this way since 1998.

Exports

Mrs. Browning: To ask the Chancellor of the Exchequer what percentage of UK goods exported to (a) Antwerp and (b) Rotterdam were for onward transit outside the EU in (i) 1997, (ii) 1998 and (iii) 1999. [129673]

Dawn Primarolo [holding answer 7 July 2000]: I refer the hon. Member to the replies I gave on 9 May 2000, Official Report, column 334W, and on 10 May 2000, Official Report, columns 400-01W, on the same subject.

Where goods are moved in transit through other EC countries while en route to non-EC countries, exporters are required to state the final country of destination on their customs declarations. Customs produce trade statistics on the basis of the declared final country of destination and do not record transit details.

However, some goods exported to other EC countries and reported as such may subsequently be exported on to a third country--e.g. by way of a further commercial transaction. The European trade statistics system does not allow for the identification of these movements.

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Public Sector Workers (Home Loans)

Mr. Heathcoat-Amory: To ask the Chancellor of the Exchequer, pursuant to his answer of 13 June 2000, Official Report, column 574W, on Public Sector Workers (Home Loans), whether a teacher employed in (a) a county school and (b) an independent school granted a preferential loan for housing by (i) the Department for Education and Employment, (ii) the Exchequer and (iii) the Department for the Environment, Transport and the Regions, would be liable for tax and national insurance contributions on that loan. [129713]

Dawn Primarolo [holding answer 7 July 2000]: On the basis that the teacher would not be an employee of a Government Department and the loan was neither guaranteed nor facilitated by the teacher's employer, the teacher would not be liable to income tax or national insurance contributions on the loan.

Mr. Heathcoat-Amory: To ask the Chancellor of the Exchequer, pursuant to his answer of 13 June 2000, Official Report, column 574W, on Public Sector Workers (Home Loans), whether a nurse (a) in the NHS and (b) employed in a private sector hospital granted a preferential loan for housing by (i) the Department of Health, (ii) the Exchequer and (iii) the Department for the Environment, Transport and the Regions, would be liable for tax and national insurance contributions on that loan. [129714]

Dawn Primarolo [holding answer 7 July 2000]: On the basis that the nurse would not be an employee of a Government Department and the loan was neither guaranteed nor facilitated by the nurse's employer, the nurse would not be liable to income tax or national insurance contributions on the loan.

Judicial Review

Mr. Lidington: To ask the Chancellor of the Exchequer if he will place in the Library copies of the evidence which he has disclosed in the judicial review application of Williams Jeffery Barber on behalf of the National Crime Squad and others. [128922]

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Dawn Primarolo [holding answer 4 July 2000]: Although the Chancellor is under no obligation to publish the evidence that is disclosed in a judicial review, a copy of the witness statement prepared by the Treasury for the judicial review will be placed in the Library.

Council Tax

Mr. Chope: To ask the Chancellor of the Exchequer how many (a) pensioners and (b) non-pensioner households spend more than 10 per cent. of their total expenditure on council tax. [125925]

Miss Melanie Johnson [holding answer 14 June 2000]: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.

Letter from Len Cook to Mr. Christopher Chope, dated 10 July 2000:

As National Statistician I have been asked to reply to your recent question asking about spending on council tax. (125925)

The Family Expenditure Survey shows an estimated 230,000 pensioner households and 500,000 non-pensioner households in Great Britain spent more than 10 per cent. of their total expenditure on council tax in 1998-99, after deducting any discounts or benefits. Total expenditure is all spending on goods and services including mortgage interest, but excluding saving and investment, life assurance and medical insurance payments, and purchase or alteration of dwellings.

Like all estimates from sample surveys, these figures are subject to sampling variability.

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