§ Mr. Peter Reesasked the Chancellor of the Exchequer in which countries of the European Community there is a distinction between taxed income and investment income for the purposes of personal income tax.
§ Mr. Joel BarnettThe United Kingdom is the only Community country in which an additional ratet of income tax—the investment income surcharge—is levied on investment incomes above a certain level. In all other Community countries however, with the exception of the Irish Republic, there are provisions—earned income or expenses allowances, etc.—which normally reduce to some degree the effective rate of tax on earned income below that on investment income. The other and more important instrument by which certain Community countries take account of the additional taxable capacity flowing from the ownership of investments is a wealth tax. Such a tax is in force in Denmark, the Netherlands, Federal Germany and Luxembourg and it is intended to introduce such a tax shortly in the Irish Republic.