HC Deb 10 April 1987 vol 114 cc449-50W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in theOfficial Report tax payable by the company in respect of the distributions made by it. If, under the terms of a double taxation agreement a non-resident recipient is entitled to a tax credit, the aggregate of the dividend and the tax credit is taxed at the restricted rate specified in the agreement.

The information required to forecast the tax yield from interest paid to overseas holders of United Kingdom securities is not available. The yield from the taxation of dividends paid to overseas holders of United Kingdom securities and their accompanying tax credits was approximately £150 million in 1985–86, the latest year for which this information is available.

The estimated reduction in tax liabilities in 1986–87 resulting from the exemption for overseas holders of British Government securities is £350 million. A figure for 1987–88 is not available.