Income Tax (Hansard, 8 March 1982)

§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer what would be the saving to the Exchequer of withdrawing the income tax exemption for gilt edged at the standard rate, including war stock, in the case of overseas residents.

§ Mr. Ridley
Interest on Government securities paid to non-residents may be exempted from United Kingdom tax under specific provisions of domestic law or through double-taxation agreements. I am afraid that it would not be possible without disproportionate cost to provide a reliable estimate of the saving to the Exchequer if this interest were not exempt.

§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for the latest period for which figures are available (a) the amount of corporate income for tax purposes subdivided into manufacturing, and so on, (b) the losses in the current year before taking account of any 297W reliefs and (c) the amount of interest payments allowed before calculating the figure under (a) above; and what were the capital and stock relief allowances, respectively, excluding any amounts carried over from the previous year.

£ million

All Companies†† Manufacturing Distribution Other Home Industrial and Commercial North Sea oil and gas Financial

Gross case I income^* 25,100 8,100 4,200 5,000 7,000 3,300

Gross losses^* 1,300 450 650 300

Other income 8,600 1,600 700 3,900 ^*** 2,400

Capital allowances claimed† 16,100 5,500 2,450 3,950 2,300 1,900

Stock relief claimed‡ 5,200 3,200 1,200 600 ^*** 200

Profits chargeable to corporation tax^** 8,500 1,850 1,250 2,700 1,200 1,500

Notes:

^***negligible

^*Gross case I income and losses are recorded in tax assessments after deducting short-term interest payments from gross trading profits; the latter two items are not separately recorded for statistical purposes. The total amount of interest payments allowable is not therefore available for these individual sectors.

†Net of balancing charges. Allowances "biting" against profits in the same year are lower.

‡Net of stock relief withdrawn. Relief "biting" against profits in the same year is lower.

^**Income for tax purposes, after deducting all allowed reliefs, including amounts carried over from previous years and deductions for payments of petroleum revenue tax for North Sea oil and gas companies.

††Excluding companies based in the United Kingdom but operating mainly overseas.

‡‡ Including holding companies of groups.

£ million
	All Companies††	Manufacturing	Distribution	Other Home Industrial and Commercial	North Sea oil and gas	Financial
Gross case I income^*	25,100	8,100	4,200	5,000	7,000	3,300
Gross losses^*	1,300	450	650	300
Other income	8,600	1,600	700	3,900	^***	2,400
Capital allowances claimed†	16,100	5,500	2,450	3,950	2,300	1,900
Stock relief claimed‡	5,200	3,200	1,200	600	^***	200
Profits chargeable to corporation tax^**	8,500	1,850	1,250	2,700	1,200	1,500
Notes:
^***negligible
^*Gross case I income and losses are recorded in tax assessments after deducting short-term interest payments from gross trading profits; the latter two items are not separately recorded for statistical purposes. The total amount of interest payments allowable is not therefore available for these individual sectors.
†Net of balancing charges. Allowances "biting" against profits in the same year are lower.
‡Net of stock relief withdrawn. Relief "biting" against profits in the same year is lower.
^**Income for tax purposes, after deducting all allowed reliefs, including amounts carried over from previous years and deductions for payments of petroleum revenue tax for North Sea oil and gas companies.
††Excluding companies based in the United Kingdom but operating mainly overseas.
‡‡ Including holding companies of groups.