§ Mr. Millanasked the Chancellor of the Exchequer What is the estimated number of deeds of covenant in favour of Charities now current; what is the total annual sum payable under these covenants; and what is the estimated annual remission of tax.
§ Mr. BarberIt is estimated that about 1,100,000 deeds of covenant in favour of charities are in operation, covering annual payments of some £20 million on which about £8 million Income Tax is repaid.
§ Mr. Millanasked the Chancellor of the Exchequer what is the estimated number of deeds of covenant in favour of individuals now current in which there is a taxation advantage; what is the total annual sum paid under these covenants; and what is the estimated annual sum of Income Tax and Surtax foregone.
§ Mr. BarberNo comprehensive figures are available, but on a rough estimate the number of covenants between individuals may be of the order of 150,000 involving a transfer of income of the order of £35 million and a reduction of tax of the order of £20 million.