§ Mr. LesterTo ask the Chancellor of the Exchequer if he will publish figures of the information he has for wage and salary earners in each of the member states of the European Community showing(a) which allow income tax relief against social security contributions, (b) which allow income tax relief against specified travel to work costs, (c) which have a non-specific earned income tax relief and (d) which allow income tax relief for work-related child care costs.
§ Mr. Norman Lamont[holding answer 19 July 1989]: According to our latest available information, these reliefs are allowed in the EC member states as follows:
- (a) In all member states, except the United Kindom and Ireland, social security contributions are generally an allowable deduction in the computation of taxable income from employment.
- (b) In Luxembourg and Netherlands specified travel to work costs are allowed as a deduction in the computation of taxable income from employment. Certain other countries, eg. Belgium, Denmark, France and Federal Republic of Germany grant a flat-rate expense deduction for employment income, which is intended to cover, inter alia, the cost of travel to work.
- (c) A general deduction in the computation of taxable income from employment, at varying percentages or flat-rates, is allowed in Belgium, Denmark, France, Federal Republic of Germany, Greece, Luxembourg, Netherlands and Spain. A flat-rate credit against tax due is allowed in Italy.
- (d) Certain reliefs in the form of deductions in the computation of taxable income from employment, with varying provisions regarding, for example, the marital status of the taxpayer and the age of the relevant children, and usually up to a specified maximum deduction, are allowed in Belgium, France, Federal Republic of Germany, Greece, Luxembourg and Netherlands.