Corporation Tax Reforms

HL Deb 25 February 2003 vol 645 c14WA

Lord Patten

asked Her Majesty's Government:

How much money they have raised from 1997 to date from the levying of tax on dividends flowing into pension funds. [HL1648]

Lord McIntosh of Haringey

The Government's package of corporation tax reforms included measures to boost corporate investment by removing lax distortions. The withdrawal of payable tax credits on dividends was just one part of these measures. Pension funds and others will share in the long-term benefits from these changes to corporation tax.

The outturn effect on tax receipts of these changes will depend on a variety of factors, including pension schemes' asset allocation and investment policies, as well as investment returns generally.