HC Deb 10 December 1998 vol 322 c296W
24. Dr. Cable

To ask the Chancellor of the Exchequer if he will make a statement on the taxation of dividends paid to non-taxpaying low-income pensioners. [61770]

Dawn Primarolo

Having listened carefully to all interested parties, the Government confirm the arrangements set out in the July 1997 Budget for phasing out payable credits in order to correct a bias in the tax system against the retention of profits for investment. Individuals have time to consider their investments before the new rules take effect—for example, they can move to tax-favoured investments should they wish to do so.

Mr. Waterson

To ask the Chancellor of the Exchequer what measures he is proposing to improve the tax position of pensioners. [61778]

Ms Hewitt

In his statement to the House on the Comprehensive Spending Review, 14 July 1998,Official Report, columns 187–211, the Chancellor announced that, as part of a £2.5 billion package of support for pensioners, the Government would set a minimum tax guarantee, so that no pensioner would pay income tax unless their income rose above a specified level. The pre-Budget report confirmed that this level would be determined in the next Budget.