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Corporation Tax

Mr. Laws: To ask the Chancellor of the Exchequer what his estimate is of the cost of abolishing the small companies rate of corporation tax and the main rate of corporation tax and replacing them with a single rate of 25 per cent. levied above the starting rate threshold. [130547]

Dawn Primarolo: This is not an option that the Government have considered, so no thorough analysis of the potential cost is available. All taxes are kept under review and decisions on tax rates are made as part of the normal Budget process. I refer the hon. Member to the Tax Ready Reckoner for indicative f igures on the direct effects of illustrative tax changes.

Delays (Travellers)

Mr. Greg Knight: To ask the Chancellor of the Exchequer what steps he is taking to reduce delays caused to bona fide travellers at customs entry points in the United Kingdom. [129605]

John Healey: The great majority of people entering the UK at ports and airports are not physically stopped by Customs. Customs use intelligence information and risk-profiling techniques to try to ensure that their checks inconvenience as few legitimate travellers as possible.

When Customs do undertake physical checks, their aim is always to take no longer than necessary to fulfil their anti-smuggling responsibilities.

Energy Efficiency

Mr. Jim Cunningham: To ask the Chancellor of the Exchequer what recent discussions he has held with the Department for Environment, Food and Rural Affairs on encouraging greater use of energy-saving practices in homes. [129751]

John Healey: Treasury Ministers and officials hold regular discussions with Defra on all policies including domestic energy efficiency.

In August this year, the Treasury and Defra launched a joint consultation document, "Economic Instruments to Improve Household Energy Efficiency: Consultation Document on Specific Measures".

Income Tax Rates

Mr. Laws: To ask the Chancellor of the Exchequer how many people paid (a) income tax, (b) income tax

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at the lower rate of 10 per cent, (c) income tax at the basic rate and (d) income tax at the upper rate in each year from 1990–91 to 2003–04; and if he will make a statement. [130558]

Dawn Primarolo: I refer the hon. Member to National Statistics table 2.1 on the Inland Revenue's website:

http://www.inlandrevenue.aov.uk/stats/income tax/itt01 l.htm.

Life Insurance

Sir John Stanley: To ask the Chancellor of the Exchequer when he will receive a reply to the letter from the right hon. Member for Tonbridge and Malling of 7 March 2003 to the Financial Secretary to the Treasury on the provision of life insurance against loss of life through acts of terrorism. [129755]

Ruth Kelly: I have done so.

Mobile Phones

Mr. Laws: To ask the Chancellor of the Exchequer what his latest estimate is of the cost of the March 1999 Budget decision to remove the income tax charge on mobile phones for each year from 1999–2000 to 2004–05; and if he will make a statement. [130136]

Dawn Primarolo: Latest figures for the income tax liability on private use of employer provided mobile phones for the two years before the charge was removed are £30 million for 1997–98 rising to £40 million for 1998–99. These figures are based on information supplied by employers on P11D returns after the end of those years. With effect from 1999–2000, when the charge was removed, employers no longer had to report this information and so no updated estimates, following those given in the 1999 Financial Statement and Budget Report, have been made.

Pension Provision

Mr. Laws: To ask the Chancellor of the Exchequer (1) what his estimate is of the revenue effect of introducing an earnings cap on the earnings for which pension provision may be made with income tax relief of £50,000 per annum; and if he will make a statement; [130137]

(2) what his estimate is of the revenue effect of introducing a maximum level of earnings for which pension provision may be made with income tax relief of (a) £40,000, (b) £50,000, (c) £60,000, (d) £70,000, (e) £80,000, (f) £90,000, (g) £100,000 and (h) £150,000; and if he will make a statement. [130559]

Ruth Kelly: Due to the uncertainty of the behavioural effects resulting from such changes, estimates are not available.

Pensions

Mr. Laws: To ask the Chancellor of the Exchequer what his latest estimate is of the cost of income tax relief on approved pension schemes, in cash terms, broken down by each income decile; and if he will make a statement. [130549]

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Ruth Kelly: Available estimates of the cost of tax relief on private pensions are contained in table T7.9 of Inland Revenue Statistics. The latest version is on the Inland Revenue website; http://www.inlandrevenue.gov.uk/stats/pensions/p t09 l.htm. It is not possible to break these estimates down by income decile.

Recovering Money (Court Action)

Mr. Jim Cunningham: To ask the Chancellor of the Exchequer what evaluation his Department has carried out of (a) the effectiveness of court action in recovering money owed to private finance companies and (b) the value for money of bringing proceedings in such cases. [130049]

John Healey: The Government keep all aspects of procurement policy under review in order to ensure that high quality public services are delivered on the basis of value for money.

Stamp Duty

Mr. Laws: To ask the Chancellor of the Exchequer (1) what his estimate is of the cost of the Pre-Budget Report 2000 decision to abolish stamp duty on property transactions in deprived areas for each year from 2000–01 to 2005–06; what assessment has been made of the effects of this policy on urban regeneration; and if he will make a statement; [130134]

(2) what his estimate is of the total annual cost of the stamp duty exemption on commercial property in deprived areas; what assessment has been made of the economic benefits of this relief; and if he will make a statement. [130238]

John Healey: The cost of abolishing stamp duty on property transactions under £150,000 in deprived areas from 30 November 2001 was £10 million in 2001–02 and £70 million in 2002–03. Estimates for later years are not yet available. The annual cost of exempting commercial properties prior to Budget 2003, included in the above amounts, was under £1 million.

The estimate of the additional cost from lifting the £150,000 cap for commercial property in deprived areas, as published in table A1.1 of this year's Financial Statement and Budget Report [HC 500], was £90 million in 2003–04 and £50 million thereafter.

This measure creates an incentive for purchasers of residential and non-residential property to invest in areas that they might not previously have considered. The social and physical benefits that follow when such areas are occupied by residents and businesses will provide a boost to the regeneration of these areas. We are committed to ensuring the effectiveness of the measure and are currently considering a range of options to evaluate the measure in time for the first report to the European Commission in 2004.

Mr. Laws: To ask the Chancellor of the Exchequer what his estimate is of the revenue cost of restructuring stamp duty on residential property sales so as to charge marginal rates of (a) 0 per cent. on property sales of £100,000 or less, (b) 2 per cent. on sales revenue of between £100,000 and £200,000, (c) 3 per cent. on sales revenue of between £200,000 and £400,000, (d) 4 per

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cent. on sales revenue of between £400,000 and £750,000 and (e) 5 per cent. on sales revenue of over £750,000; and if he will make a statement. [130150]

Ruth Kelly: The revenue cost of restructuring stamp duty on residential property sales according to the scheme described above is estimated to be £1.1 billion in 2004–05. This does not include any allowance for behavioural changes.

Tax Credits

Mr. Jim Cunningham: To ask the Chancellor of the Exchequer what assistance is available to help low income families with their tax credit claims. [125353]

Dawn Primarolo [holding answer 15 July 2003]: A range of measures is available.

Personal callers to Inland Revenue offices can make a claim to tax credits, as well as getting face-to-face help and advice, from any inland revenue inquiry centre. Jobcentre Plus customers can also get help, advice and make claims through Jobcentre Plus offices.

For those customers who prefer to make a paper claim, there is a single simple form for claiming both working tax credit and child tax credit supplemented by comprehensive—plain language—guidance.

A telephone helpline (GB: 0845 300 3900; NI: 0845 603 2000) is available 8am to 8pm every day (except Christmas Day, Boxing Day, New Years Day and Easter Sunday). A dedicated helpline is available for those with hearing or speech difficulties.

A range of explanatory leaflets is available covering the tax credits scheme in general, other help that may be available and further information about help with child care costs. These leaflets—and the paper claim form and guidance are available in large print and Braille versions as well as in a number of languages other than English.

By visiting the Inland Revenue website (www. inlandrevenue.gov.uk/taxcredits), families—whatever their income or circumstances—can quickly establish whether they qualify for tax credits and obtain an indication of the amount of any potential award. Claims, and subsequent changes of circumstances, can be submitted online and answers to a wide range of frequently asked questions are also available on the site.

The Inland Revenue is also piloting new ways of working with intermediary organisations and local community groups to provide assistance with claims. At the same time, Jobcentre Plus offices are making sure their customers are aware of the help they can get, through the working tax credit, as they move into work.

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