HL Deb 13 May 1980 vol 409 cc247-8WA
Lord BLEASE

asked Her Majesty's Government:

Whether they will give details of how the share of United Kingdom taxes attributed to Northern Ireland under the Northern Ireland Constitution Act 1973 is determined, including the share of Customs and Excise, Inland Revenue, vehicle excise duties and National Insurance surcharge and the details of the deductions and payments, including collection costs of United Kingdom taxes retained by the Treasury, the Northern Ireland share of the United Kingdom payment to the EEC retained by the Treasury, and the overall net share of United Kingdom taxes payable by the Treasury to the Northern Ireland Consolidated Fund.

The MINISTER of STATE, TREASURY (Lord COCKFIELD)

The share of United Kingdom taxes attributed to Northern Ireland under the Northern Ireland Constitution Act 1973 is calculated in accordance with the requirements of the Northern Ireland (Share of United Kingdom Taxes) Regulations 1975 (SI 1975 No. 1313) and the Northern Ireland (Share of United Kingdom Taxes) (National Insurance Surcharge) Regulations 1977 (SI 1977 No. 1879).

Taxes collected by the Customs and Excise are attributed either on the basis of the proportion that the expenditure in Northern Ireland subject to the tax bears to the total United Kingdom expenditure on taxable goods and services or, where such figures are not available, on the basis of the proportion that the population of Northern Ireland bears to that of the United Kingdom.

Income and corporation taxes are attributed on the basis of the proportion that the income of individuals resident in Northern Ireland bears to the total of such United Kingdom income.

The Northern Ireland share of the proceeds of stamp duty and capital taxes collected by the Inland Revenue and Vehicle excise duty are attributed on the basis of the amounts collected in Northern Ireland, and the share of the National Insurance surcharge is the amount of the surcharge that is collected in respect of employed earners in Northern Ireland.

From the aggregate share of these taxes is deducted the share of the costs of collection, which is attributed in proportion to the share of the taxes that is attributed to Northern Ireland. Also deducted is the proportion of the United Kingdom's contribution to the European Communities that is collected in Northern Ireland, less the sum allowed by the European Communities in respect of collection costs.