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Mr. Duncan Smith: To ask the Chancellor of the Exchequer what estimate he has made of the loss to the Exchequer arising from official error on the part of HM Revenue and Customs staff in each of the last five years. 
Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer what the HM Revenue and Customs employee headcount was for its (a) PSN and (b) information management services department in (i) 2006, (ii) 2007, (iii) 2008 and (iv) 2009. 
|HM RC directorate|
|IMS (Information Management Services)||PSN (PAYE, SA and NIC)|
Mr. Timms: In March 2008 HMRC published details of analysis from 2005 that attempted to derive broad-brush estimates of the direct tax gap at the start of the decade. This publication contained a net tax gap estimate for stamp duty land tax of £0.5 billion, within a range of £0.2 billion to £1 billion and can be found at:
Andrew Stunell: To ask the Chancellor of the Exchequer (1) what estimate he has made of the number of people aged 75 years and over resident in each local authority area in the North West with an annual income below (a) £10,000, (b) the age-related personal allowance of £9,640 and (c) the basic level of personal allowance of £6,475 in 2009-10; 
(2) what estimate he has made of the number of people aged between 65 and 74 years old resident in each local authority area in the North West with an annual income below (a) £10,000, (b) the age-related personal allowance of £9,640 and (c) the basic level of personal allowance of £6,490 in 2009-10. 
Mr. Timms: The requested information is not readily available due to small sample sizes at local authority area level and non representative data for individuals with income below the personal allowance.
However, information on taxpayers' income and income tax by unitary authority can be found in table 3.14 'Income and tax by borough and district or unitary authority' on HM Revenue and Customs' website, available at:
Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer what forms of individual income are subject to withholding tax but are not part of the Pay As You Earn system; and how the amount to be withheld is calculated on those forms of income. 
Investment income from banks and building societies has basic rate tax deducted at source by the payer. Individuals who are not liable to tax can arrange to receive their income paid gross or claim a repayment, and those who should only be paying at the 10 per cent. savings rate can claim a repayment.
Interest distributions paid by authorised investment funds and investment trust companies are also subject to deduction of basic rate tax at source. Individuals with no liability or reduced liability can claim a repayment.
Other interest, annual payments and patent royalties payable to individuals are subject to deduction of basic rate tax at source. This is treated as if it were tax paid by the recipient, who then only has a tax liability on the gross amount of the payment if they are higher rate taxpayers.
Dividends are not subject to deduction of basic rate tax at source. However, individuals who receive dividends from UK and most non-UK companies are entitled to a non-payable tax credit designed to compensate for tax paid on corporate profits at the company level, and this is used to satisfy the tax liability of the recipient if they are liable to basic rate tax only. The recipient will then only have an additional liability if liable to higher rate tax on the amount of the dividend plus tax credit. Dividend distributions paid by authorised investment funds are treated in the same way.
Gains from certain life insurance policies are treated as income. Although there is no direct system of tax withholding, insurers are charged corporation tax on returns ultimately attributable to their policyholders. To reflect this, individuals with policies from UK life insurers will be treated as though they have paid basic rate tax on gains they realise from these policies.
Payments under purchase life annuities are subject to deduction of basic rate tax at source on the part of each payment that represents income rather than a return of the original capital used to acquire the annuity. Basic rate tax is deducted from this income by the insurer making the annuity payments and is treated as tax paid by the annuitant.
Income from construction contracts of any individual subcontractor registered for payment under deduction in the Construction Industry Scheme will be subject to a deduction of 20 per cent. on the amount which does not represent the direct cost of materials.
The non resident Landlords Scheme requires UK letting agents to deduct basic rate tax from any rent they collect for non resident landlords from UK property. If non resident landlords do not have UK letting agents acting for them, and the rent is more than £100 a week, their tenants must deduct the tax. When working out the amount to tax the letting agent/tenant can take off deductible expenses.
The taxation of income from trusts, other than bare trusts, depends upon whether the income is discretionary or an immediate entitlement. Discretionary payments from trusts which are not settlor-interested carry a credit at the trust rate. Where there is an income entitlement the trustees account for tax on that income and the beneficiaries receive credit for any tax payable by the trustees, along with any tax deducted at source and tax credits. The rate depends upon the nature of the income, 10 per cent. on dividend type income and basic rate on other income.
Where settlors are taxable on income arising to a trust, the trustees account for tax on that income as recipients. The settlor receives credit for any tax payable by the trustees along with tax deducted at source and any tax credits, for example attaching to dividends. The
rate of tax chargeable on the trustees depends firstly on the nature of the trust and then on the nature of the income.
Mr. Prisk: To ask the Chancellor of the Exchequer (1) how much HM Revenue and Customs (HMRC) charged in fines to (a) partnerships and (b) companies who (i) were fined for not filing their tax returns with HMRC by 31 January 2009 and (ii) were registered as a partnership for the purpose of receiving their unique taxpayer reference from 1 October 2008; 
(2) how much HM Revenue and Customs (HMRC) charged in fines to (a) partnerships and (b) companies who were fined for not filing their tax returns with HMRC by 31 January 2010 and were registered as a partnership for the purpose of receiving their unique taxpayer reference from 1 October 2009. 
Mr. Timms: Any partnership registering after 1 October 2008 and 1 October 2009 would not be required to submit a partnership tax return until 31 January 2010 or 31 January 2011 respectively. Penalties for late 2008-09 returns will start to be issued towards the end of February 2010.
Mr. Duncan Smith: To ask the Chancellor of the Exchequer what estimate he has made of the cost to the Exchequer arising from organised fraud in relation to (a) income tax, (b) value added tax, (c) corporation tax, (d) national insurance, (e) tax credits and (f) child benefit in each of the last five years. 
Sarah McCarthy-Fry: In "Protecting Tax Revenues 2009", published at 2009 pre-Budget report, HMRC estimated that criminal attacks accounted for 12.5 per cent. of the total net tax gap of £40 billion in 2007-08:
Chris Ruane: To ask the Chancellor of the Exchequer if he will estimate the (a) number and (b) proportion of children living in poverty who would benefit from measures to benefit married couples through the tax system. 
The number and proportion of children living in poverty who would benefit depends on the specific measure considered to benefit married couples
through the tax system; and whether all married couples would benefit or just those with children below a certain age. When considering reforms of this type, it is important to take into account that children in lone-parent families face a higher chance of living in relative poverty than children in couple families. The Households Below Average Income 1994/95-2007/08 publication shows that 36 per cent. of children living in lone-parent families fall below the 60 per cent. median income threshold (before housing costs), against 18 per cent. of children in couple families.
Mr. Oaten: To ask the Chancellor of the Exchequer pursuant to the answer of 14 December 2009, Official Report, columns 856-57W, on taxation: health professions, if he will consider the merits of bringing forward proposals to reduce to zero the rate of value added tax on medical appliances supplied by appliance contractors. 
Robert Neill: To ask the Chancellor of the Exchequer how much the Valuation Office Agency has spent on the Automated Valuation Model (AVM) for domestic dwellings to date; what the purpose of the AVM for domestic dwellings is; and which databases use (a) AVM technology and (b) data analysed by the AVM system. 
Ian Pearson: From 2003 to 31 January 2010, total expenditure by the Valuation Office Agency (VOA) on Automated Valuation Model (AVM) technology, to support a range of its activities associated with domestic property valuation, has amounted to approximately £14 million.
The VOA originally developed AVM technology to support work on the 2007 Council Tax Revaluation in England, which was postponed in 2005, however the technology has since been used to develop a council tax banding support tool to assist with maintenance of current council tax valuation lists.
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