§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer (1) whether he will publish in the Official Report a table showing for the years 1958, 1964, 1969, 1974, 1979 and 1985 the gross overseas income for tax purposes of the companies and financial institutions as defined on page 168 of the annual supplement to Economic Trends 1987, the amount set off against tax of other countries under double taxation relief, and the amount of tax collected;
(2) whether he will publish in the Official Report a table showing the greater detail than table 1.10 in the edition of 43W the United Kingdom "National Accounts" 1986, for the years 1975, 1979 and 1985 the property income from abroad net of foreign taxes and the property income paid abroad less United Kingdom taxes for each sector, including financial institutions, together with the totals of United Kingdom tax and foreign tax payable and the amount of double taxation relief on income from abroad.
§ Mr. Norman Lamont
[pursuant to his replies, 18 March 1987, c. 537]: The closest estimate, available for a run of years, of gross overseas income for tax purposes of companies and financial institutions is provided by the series "Property income from abroad net of foreign taxes" in table 1.10 of United Kingdom "National Accounts" (1986 Edition). Figures are as follows:
£ million Year Number 1958 682 1964 900 1969 1,374 1974 6,209 1975 6,563 1979 17,523 1985 52,639
More detailed information on property income from abroad net of foreign taxes and property income paid abroad less United Kingdom taxes is published in Section 5 of "United Kingdom Balance of Payments", 1986 Edition. "Property income from abroad net of foreign taxes" in the national accounts is identical to "Earnings on external assets of the United Kingdom" in the balance of payments; "Property income paid abroad net of UK taxes" is identical to "Earnings on UK liabilities to overseas residents". A limited analysis by sector is available.
The double taxation relief allowed to United Kingdom residents in respect of foreign taxes paid on income or capital gains from foreign sources in 1974, 1975, 1979 and 1983 amounted to £2,500 million, £2,200 million, £1,390 million and £2,100 million respectively. Information is not available for years later than 1983 or before 1974. The relief given for 1979 and 1983 is estimated to be in respect of foreign taxes paid of approximately £1,800 million and £3,500 million respectively. No figure is available for 1974, 1975 or for 1985. Estimates of United Kingdom taxes on property income paid abroad are published in table 1.10 of United Kingdom "National Accounts," 1986 Edition. No sectoral breakdown is available.
Income from abroad is not taxed separately in the United Kingdom but is considered together with other forms of income, deductions, reliefs and allowances in computing a company's profits chargeable to corporation tax. Hence, the amount of tax charged or collected on income from overseas is not known.