HC Deb 01 August 1984 vol 65 cc397-406W
Mr. Fisher

asked Chancellor of the Exchequer what is the estimated cost to the Treasury of the Inland Revenue extra-statutory concession on compensation for compulsory slaughter of farm animals in each of the last five years for which figures are available.

Mr. Moore

[pursuant to his reply, 23 July 1984]: I regret that no data are available centrally from which to make reliable estimates of the cost of this concession. However, in the past five years there has been a wide variation in the amount of compensation paid to farmers for the compulsory slaughter of farm animals, which I understand to have been between about £2 million in 1982–83 and about £24 million in 1983–84. For a number of reasons the cost of the concession would normally amount only to a small fraction of the compensation payments.

Mr. Fisher

asked the Chancellor of the Exchequer (1) what is the estimated cost of the Inland Revenue extra-statutory concession on income from abroad assessable on the remittance basis and remitted compulsorily to the United Kingdom under the Exchange Control Acts;

(2) what is the estimated cost of the Inland Revenue extra-statutory concession on the transfer of the businesses from individuals or partnerships to companies to whom stock relief can be passed on;

(3) what is the estimated cost of the Inland Revenue extra-statutory concession on the postponement of capital allowances to secure double taxation relief;

(4) what is the estimated cost of the Inland Revenue extra-statutory concession on stamp duty on the transfers of stock issued by the Electricity Board for Northern Ireland or the Northern Ireland Electricity Service.

Mr. Moore

[pursuant to his reply, 30 July 1984]: These extra-statutory concessions have no current application. That relating to the postponement of capital allowances to secure double taxation relief has been superseded by section 78 of the Finance Act 1982.

Mr. Fisher

asked the Chancellor of the Exchequer (1) what is the estimated cost of the Inland Revenue extra-statutory concession on untaxed interest paid to nonresidents;

(2) what is the estimated cost of the Inland Revenue extra-statutory concession on underlying tax on insurance companies on dividends paid to it by a company resident in an overseas territory;

(3) what is the estimated cost of the Inland Revenue extra-statutory concession on exemptions from capital gains tax for people over the age of 60 years where gains accrue on the disposal of a business owned for at least a year;

(4) what is the estimated cost of the Inland Revenue extra-statutory concession on the property of Roman Catholic religious communities whose purpose are charitable resulting from the non-claimance of capital transfer tax on the death of one of the nominal owners of the property;

(5) what is the estimated cost of the Inland Revenue extra-statutory concession on inter vivos gifts to charities where the claim to capital transfer tax is not pursued against the charitable institution.

(6) what is the estimated cost of the Inland Revenue extra-statutory concession on capital transfer tax payable on agricultural property;

(7) what is the estimated cost of the Inland Revenue extra-statutory concession on deferred payment of capital transfer tax when executors cannot immediately transfer to the United Kingdom sufficient of the deceased's foreign assets for such payment, because of restrictions imposed by foreign Governments;

(8) what is the estimated cost of the Inland Revenue extra-statutory concession on works of art, normally kept overseas, which become liable to capital transfer tax on the owner's death solely because it is physically situated in the United Kingdom' at the relevant date on account of public exhibition, cleaning or restoration;

(9) what is the estimated cost of the Inland Revenue extra-statutory concession over capital transfer tax liable on accumulation and maintenance settlements under paragraph 15(1) of schedule 5 to the Finance Act 1975;

(10) what is the estimated cost of the Inland Revenue extra-statutory concession on capital transfer tax liable on successive charges under paragraph 5(2) of schedule 5 to the Finance Act 1975;

(11) what is the estimated cost of the Inland Revenue extra-statutory concession on capital transfer tax liability of partnership assurance policies;

(12) what is the estimated cost of the Inland Revenue extra-statutory concession on relief from capital gains tax on the repurchase of a business, or business asset, that had been previously sold;

(13) what is the estimated cost of the Inland Revenue extra-statutory concession on relief from capital gains tax on the replacement of business assets by unincorporated associations not established for profit;

(14) what is the estimated cost of the Inland Revenue extra-statutory concession on development land tax on the development of land for industrial use by prospective traders;

(15) what is the estimated cost of the Inland Revenue extra-statutory concession on development land tax on sums received by way of compensation for damage to land;

(16) what is the estimated cost of the Inland Revenue extra-statutory concession on capital allowances on the replacement of motor cars;

(17) what is the estimated cost of the Inland Revenue extra-statutory concession on borrowing and lending of securities;

(18) what is the estimated cost of the Inland Revenue extra-statutory concession on capital expenditure incurred in meeting the requirements of a fire authority on certain trade premises (a) in Northern Ireland and (b) by leasors;

(19) what is the estimated cost of the Inland Revenue extra-statutory concession on capital allowances on patents sold to an associate;

(20) what is the estimated cost of the Inland Revenue extra-statutory concession on balancing charges on capital allowances for buildings after the cessation of trade;

(21) what is the estimated cost of the Inland Revenue extra-statutory concession on writing down allowances on the sales of property sold by developers after that property has been let;

(22) what is the estimated cost of the Inland Revenue extra-statutory concession on apportionment of income in close companies, 90 per cent. or more owned by nonresidents;

(23) what is the estimated cost of the Inland Revenue extra-statutory concession on distributions, by way of dividends or interest, made by loan or money societies;

(24) what is the estimated cost of the Inland Revenue extra-statutory concession on holiday clubs and thrift funds;

(25) what is the estimated cost of the Inland Revenue extra-statutory concession on trading activities undertaken for charitable purposes;

(26) what is the estimated cost of the Inland Revenue extra-statutory concession on moneys brought forward under section 17(1) of the Corporation Taxes Act 1970 by industrial and provident societies;

(27) what is the estimated cost of the Inland Revenue extra-statutory concession on the excess of a company's relevant income over its distribution where the amounts do not exceed £100 in any one financial year;

(28) what is the estimated cost of the Inland Revenue extra-statutory concession on the transactions of recognised money-brokers issuing short-term loans or advances;

(29) what is the estimated cost of the Inland Revenue extra-statutory concession on group relief and section 29 of the Finance Act 1973;

(30 what is the estimated cost of the Inland Revenue extra-statutory concession on capital allowances for assets leased outside the United Kingdom;

(31) what is the estimated cost of the Inland Revenue extra-statutory concession on schedule D case V, losses carried forward for set-off against future income from the same property;

(32) what is the estimated cost of the Inland Revenue extra-statutory concession on associated close and small companies, which do not have substantial trading interdependence.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I regret that no data are available centrally on which to make reliable estimates of the cost of any of the foregoing extra-statutory concessions.

Mr. Fisher

asked the Chancellor of the Exchequer (1) what is the estimated cost of the Inland Revenue extra-statutory concession on payments out of a discretionary trust which are entitled to relief from United Kingdom tax under the provisions of the Income Tax Acts or of a double taxation agreement;

(2) what is the estimated cost of the Inland Revenue extra-statutory concession on capital gains tax exemptions to people who were absent from the United Kingdom for reasons of (a) employment, (b) overseas duties and (c) conditions of employment;

(3) what is the estimated cost of the Inland Revenue extra-statutory concession on retirement relief for directors of companies.

(4) what is the estimated cost of the Inland Revenue extra-statutory concession on retirement relief on the disposal of assets or shares by a director and used by a company;

(5) what is the estimated cost of the Inland Revenue extra-statutory concession on additional stamp duty liable on replicas of documents which have been spoilt or lost;

(6) what is the estimated cost of the Inland Revenue extra-statutory concession on income tax on adoption allowances payable under section 32 of the Children Act 1975;

(7) what is the estimated cost of the Inland Revenue extra-statutory concession on relief under section 125 of the Capital Gains Act on assets sold in anticipation of liquidation;

(8) what is the estimated cost of the Inland Revenue extra-statutory concession on relief from income tax on retirement annuities;

(9) what is the estimated cost of the Inland Revenue extra-statutory concession on stamp duty on documents which assure group life and pension policies.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I regret that it is not possible to make firm estimates of the costs of these extra-statutory concessions. However, it is unlikely that any individual concession costs more than £500,000 per annum.

Mr. Fisher

asked the Chancellor of the Exchequer (1) what is the estimated cost of the Inland Revenue extra-statutory concession on gross payments by contractors to uncertified subcontractors where tax should have been deducted;

(2) what is the estimated cost of the Inland Revenue extra-statutory concession on underlying tax on portfolio investments whose dividends are received from overseas companies;

(3) what is the estimated cost of the Inland Revenue extra-statutory concession on insurance payments received by lessees on property held on leases of 50 years or less;

(4) what is the estimated cost of the Inland Revenue extra-statutory concession on property held by personnel representatives for the benefit of individuals who under a will are entitled to the proceeds of a house absolutely or for life;

(5) what is the estimated cost of the Inland Revenue extra-statutory concession on the disposal following reorganisation of share capital, of unquoted shares acquired before 6 April 1965;

(6) what is the estimated cost of the Inland Revenue extra-statutory concession on the tax borne by a beneficiary of a trust or the residuary legatee of an estate on apportioned income of a company under section 74 of the Capital Gains Tax Act 1979;

(7) what is the estimated cost of the Inland Revenue extra-statutory concession on funeral expenses set against capital transfer tax;

(8) what is the estimated cost of the Inland Revenue extra-statutory concession on the relief from capital transfer tax under paragraph 1 of schedule 7 to the Finance Act 1975 to the estates of (a) members of the armed forces and (b) members of the Royal Ulster Constabulary who died from injuries caused by terrorist activity in Northern Ireland in each of the last 10 years;

(9) what is the estimated cost of the Inland Revenue extra-statutory concession on stamp duty liable on lost documents;

(10) what is the estimated cost of the Inland Revenue extra-statutory concession on capital transfer tax liable on a disposition by a child in favour of his unmarried mother under section 46(3) Finance Act 1975 if (a) the mother is incapacitated from maintaining himself or (b) she is genuinely financially dependent on the child;

(11) what is the estimated cost of the Inland Revenue extra-statutory concession on capital transfer tax on property liable on the ceasing of an annuity;

(12) what is the estimated cost of the Inland Revenue extra-statutory concession on relief in mergers under schedule 18 to the Finance Act 1980;

(13) what is the estimated cost of the Inland Revenue extra-statutory concession on income tax on the salaries of certain Hong Kong officials who work in the United Kingdom;

(14) what is the estimated cost of the Inland Revenue extra-statutory concession on small payments under the construction industry tax deduction scheme;

(15) what is the estimated cost of the Inland Revenue extra-statutory concession on stamp duty on the transfer of assets between non-profit making bodies with similar objects;

(16) what is the estimated cost of the Inland Revenue extra-statutory concession on stamp duty on the transfer of stock from persons to themselves operating as an executors' assent;

(17) what is the estimated cost of the Inland Revenue extra-statutory concession on capital transfer tax on subsequent devolutions of property under the wills of persons dying before 12 March 1952 whose estates are wholly exempted from estate duty under section 8(1) of the Finance Act 1894.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I regret that it is not possible to make firm estimates of the costs of these extra-statutory concessions. However, it is unlikely that any individual concession cost more than £100,000 per annum.

Mr. Fisher

asked the Chancellor of the Exchequer (1) what is the estimated cost of the Inland Revenue extra-statutory concession on interest on inter-bank loans;

(2) what is the estimated cost of the Inland Revenue extra-statutory concession on loans to executors made by a close company for the payment of estate duty.

Mr. Moore

[pursuant to his reply, 30 July 1984]: There is almost certainly no cost involved in either the current or future years.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of the Inland Revenue extra-statutory concession to persons treated as residents in the United Kingdom who incur gains chargeable to capital gains tax either before their arrival or after their departure from the United Kingdom in that financial year.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I regret that it is not possible to make a firm estimate but the cost is likely to be about £2 million per annum.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of the Inland Revenue extra-statutory concession on exemptions from capital gains tax for the matrimonial home of a separated couple.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I regret that it is not possible to make a firm estimate, but the cost is likely to be about £1 million per annum.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of the Inland Revenue extra-statutory concession on exemptions from capital gains tax for persons who own separate businesses which are regarded for the purposes of section 124(2) of the Capital Gains Tax Act 1979 as the same business.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I regret that it is not possible to make a firm estimate, but the cost is likely to be about £1 million per annum.

Mr. Fisher

asked the Chancellor of the Exchequer (1) what is the estimated cost of the Inland Revenue extra-statutory concession on funeral expenses set against estate duty liabilities;

(2) what is the estimated cost of the Inland Revenue extra-statutory concession on the property of Roman Catholic religious communities whose purposes are charitable resulting from the non-claimance of estate duty on the death of one of the nominal owners of the property;

(3) what is the estimated cost of the Inland Revenue extra-statutory concession on inter vivos gifts to charities where the claim to duty is not pursued against the charitable institution;

(4) what is the estimated cost of the Inland Revenue extra-statutory concession on the surrender or discharge of prior or legal rights in a Scottish estate where estate duty is not claimed;

(5) what is the estimated cost of the Inland Revenue extra-statutory concession on disclaimers of rights under an English intestacy where estate duty is not claimed;

(6) what is the estimated cost of the Inland Revenue extra-statutory concession on the treatment, for estate duty, of premium savings bonds and savings contracts under the save-as-you-earn scheme held by persons who die domiciled in the Channel Islands, the Isle of Man or Northern Ireland;

(7) what is the estimated cost of the Inland Revenue extra-statutory concession on the allowance for, or repayment of, legacy or succession duty paid on the capital allowance of settled property which becomes liable for estate duty for the first time at its passing on the death of a life tenant;

(8) what is the estimated cost of the Inland Revenue extra-statutory concession on estate duty payable on the agricultural value of agricultural property;

(9) what is the estimated cost to the Treasury on the Inland Revenue extra-statutory concession on sales, within three years of death, of objects of national, scientific, historic or artistic interest on which exemption from estate duty has been allowed;

(10) what is the estimated cost of the Inland Revenue extra-statutory concession on the disposal, other than by sale, within three years of death, or because of nonobservance within that period of an undertaking given when the exemption from estate duty was allowed;

(11) what is the estimated cost of the Inland Revenue extra-statutory concession on the exemption from estate duty of the income from property held to provide a precuniary legacy to a residuary legatee;

(12) what is the estimated cost of the Inland Revenue extra-statutory concession on reduced rates of estate duty payable on the agricultural value of agricultural property where estate duty is chargeable in respect of an interest in a partnership which includes agricultural property among its assets;

(13) what is the estimated cost of the Inland Revenue extra-statutory concession on the relief from estate duty under section 71 of the Finance Act 1952 of the estates of (a) members of the armed forces and (b) members of the Royal Ulster Constabulary who died from injuries caused in Northern Ireland by terrorist activity in each of the last 10 years;

(14) what is the estimated cost of the Inland Revenue extra-statutory concession on deferred payment of estate duty when executors cannot immediately transfer to the United Kingdom sufficient of the deceased's foreign assets for such payment, because of restrictions imposed by foreign Governments;

(15) what is the estimated cost of the Inland Revenue extra-statutory concession on estate duty payable on property on the ceasing of an annuity.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I regret that it is not possible to make firm estimates of the costs of these extra-statutory concessions. However, they relate to deaths occurring before 13 March 1975 and it is unlikely that their total cost now exceeds £100,000 per annum.

Mr. Fisher

asked the Chancellor of the Exchequer how many staff of the Inland Revenue are employed in monitoring the cost of Inland Revenue extra-statutory concessions.

Mr. Moore

[pursuant to his reply, 30 July 1984]: It is not possible to give a figure. Such monitoring is a small part of the duties of the appropriate specialists at head office, and these specialists consult as necessary with other staff in local offices.

Mr. Fisher

asked the Chancellor of the Exchequer how many staff of Her Majesty's Customs and Excise are employed in monitoring the cost of Her Majesty's Customs and Excise extra-statutory concessions.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: The monitoring of the cost of extra-statutory concessions is carried out by staff employed both in headquarters and in local offices. No staff are employed wholly on these duties and it is not possible to estimate the number of staff whose duties may include such monitoring.

Mr. Fisher

asked the Chancellor of the Exchequer, pursuant to his reply of 25 July, whether he will take steps to monitor the cost of the Inland Revenue extra-statutory concession on bank interest received by charities.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I have no plans to do so. The cost of such an exercise would itself be substantial.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax on linked goods schemes.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: It is estimated that the annual cost of this extra-statutory concession on VAT on linked goods schemes is unlikely to exceed £50,000.

Mr. Fisher

asked the Chancellor of the Exchequer (1) what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax on imported insurance services provided by overseas insurers;

(2) what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax on goods specially adapted for a particular handicapped person;

(3) what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax on goods exported by a charity;

(4) what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax payable on meals and drinks provided to temporary employees or organisers of agricultural and similar shows;

(5) what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax payable on capital goods purchased or loaned for business entertainment;

(6) what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on the waiving of value added tax which has been undercharged by a registered person as the result of a genuine misunderstanding;

(7) what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on the valuation of used goods disposed of for no consideration;

(8) what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on the valuation of used equipment for value added tax purposes, on deregistration.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: I regret that no central data exist on which to make reliable estimates of the costs of these extra-statutory concessions.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax on dealer/loader schemes.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: The extra-statutory concession on value added tax on dealer/ loader schemes has not resulted in a significant loss to the Revenue because the tax charged would normally be recovered by the customer as input tax.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on the exclusion from taxable turnover of the value of the disposal of capital assets previously used in a business, for the purpose of value added tax registration or deregistration.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: It is estimated that the annual cost of the extra-statutory concession does not exceed £1 million.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax on construction of self-contained building by a charity.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: The value of repayments made in connection with this concession on value added tax on construction of self-contained buildings by a charity amounted to £426,920 in 1983.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax on imported second hand cars.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: It is estimated that the annual cost of this extra-statutory concession on imported second hand cars does not exceed £80,000.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax paid as a result of misdirection by a Customs and Excise officer.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: No value added tax is paid by traders when an under-declaration has occurred as the result of misdirection by a Customs and Excise officer. The amount of value added tax waived under this concession amounted to some £3.5 million in 1983–84.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on value added tax on repossessed goods.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: It is estimated that the annual cost of this extra statutory concession on repossessed goods is about £1 million.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of Her Majesty's Customs and Excise's extra-statutory concession on relief from value added tax on bad debts with regard to goods supplied under a contract reserving the suppliers title to such goods until they have been paid for.

Mr. Hayhoe

[pursuant to his reply, 30 July 1984]: It is estimated that the annual cost of this extra-statutory concession does not exceed £150,000.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of the Inland Revenue extra-statutory concession on direct exports from tanker-loading fields under section 3(1)(f) of the Oil Taxation Act 1975.

Mr. Moore

[pursuant to his reply, 30 July 1984]: The cost of this extra-statutory concession is estimated to be about £1 million per year.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of the Inland Revenue extra-statutory concession on where a participator elects, under section 8(4) of the Oil Taxation Act 1975, gas is excluded from the total of oil won.

Mr. Moore

[pursuant to his reply, 30 July 1984]: The cost of this extra-statutory concession was nil in 1983.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of the Inland Revenue extra-statutory concession on relief under section 124 of the Capital Gains Tax Act on the sale of assets following cessation of trading.

Mr. Moore

[pursuant to his reply, 30 July 1984]: I regret that it is not possible to make a firm estimate, but the cost is likely to be about: £1 million per annum.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of the Inland Revenue extra-statutory concession on income tax paid in respect of mobility allowance received in any of the tax years 1975–76 to 1978–79.

Mr. Moore

[pursuant to his reply, 30 July 1984]: It is estimated that the total cost of this concession will have amounted to some £2,500,000 by the time it lapses in April 1985.

Mr. Fisher

asked the Chancellor of the Exchequer what is the estimated cost of the Inland Revenue extra-statutory concession on stamp duty repaid on cancelled policies of insurance.

Mr. Moore

[pursuant to his reply, 30 July 1984]: About £750,000.