§ Mr. BercowTo ask the Chancellor of the Exchequer if he will estimate the cost to the Exchequer in each of the last four years of granting tax exemptions to the income, profits and gains of Government, foreign states and integral bodies of foreign Governments arising in the United Kingdom. [26110]
§ Dawn PrimaroloThe table details the approximate amounts refunded during the last four years to states or organisations granted sovereign immunity from taxation. Precise details are not held of other income (such as interest) which is relieved from tax at source, or of capital gains. Some of these items would in any case be exempted and payable without deduction of tax under the terms of a double taxation convention, or the UK tax legislation, as those apply to any non resident.
£ million Tax year Total payments 1997–98 121 1998–99 63 1999–2000 16 2000–01 8 2001–021 2 1 To 31 December 2001 Notes:
1. The amounts shown include payments of tax credits attaching to dividends payable on shares in UK companies, and tax deducted from interest.
235W2. The legislation enabling payment of dividend tax credits to exempt bodies was repealed with effect from 6 April 1999. The amounts shown as refunded in subsequent years comprise tax credits attributable to periods prior to 6 April 1999, and tax deducted from interest.
§ Mr. BercowTo ask the Chancellor of the Exchequer if he will estimate the gain to the Exchequer in each of the last four years of the exemptions granted by overseas Governments to the income, profits and gains of the United Kingdom Government and United Kingdom Government bodies arising within the jurisdiction of those overseas Governments. [26111]
§ Dawn PrimaroloThe average gain to the UK Exchequer from exemptions granted by overseas Governments to income arising on the UK reserves invested abroad, is estimated as approximately £250 million for each of the last four years.