§ Mr. Austin Mitchellasked the Chancellor of the Exchequer (1) what is the rate of tax payable in the current financial year on(a) interest and(b) dividends paid to overseas holders of United Kingdom securities; and if he will provide a forecast of the yield in each case together with his estimate of the amount of tax forgone by virtue of exemption granted in the case of interest paid on certain government stocks;
(2) whether he will publish in theOfficial Report his estimate of the saving to the Exchequer in 1987–88 of ending the tax exemption on the interest paid on gilt-edged securities to overseas residents.
§ Mr. Norman Lamont[pursuant to his reply, 25 March 1987, c. 213]: The rate at which tax is payable on interest paid to non-resident holders of United Kingdom securities will depend on the nature of the security and the terms of any double taxation agreement between the United Kingdom and the country of residence of the recipient. Interest on certain British Government securities is not liable to income tax. Under the imputation system of corporation tax, the shareholders' liability to basic rate income tax on dividends paid by United Kingdom companies is regarded as met by the advance corporation
Income tax plus national insurance contributions1 Multiples of average earnings ½ ⅔ 1 5 10 (a)£ per week (b) Per cent. (a) £ per week (b) Per cent. (a) £ per week (b) Per cent. (a) £ per week (b) Per cent. (a) £ per week (b) Per cent. Single person 1978–79 10.92 23.5 17.03 27.5 29.25 31.5 242.17 52.2 625.97 67.5 1985–86 25.99 26.2 38.89 29.4 64.69 32.6 451.12 45.5 1,046.62 52.7 1986–87 27.52 25.8 41.04 28.8 68.07 31.9 487.04 45.6 1,127.24 52.8 1987–88 28.32 24.9 41.96 27.7 62.94 30.5 520.05 45.8 1,201.95 52.9 Married couple with part-time working spouse 1978–79 7.43 12.5 13.54 17.1 29.28 24.6 285.80 48.0 726.82 61.1 1985–86 18.77 15.0 31.68 19.0 62.89 25.1 539.41 43.1 1,235.19 49.3 1986–87 20.16 15.0 33.68 18.8 66.62 24.8 579.85 43.1 1,328.71 49.4 1987–88 21.21 14.8 36.82 19.3 68.51 23.9 614.06 42.9 1,412.89 49.3 Married couple plus two children2 with part-time working spouse 1978–79 1.13 1.9 7.13 9.0 22.87 19.2 277.77 46.7 718.49 60.4 1985–86 4.97 4.0 17.88 10.7 49.09 19.6 525.61 42.0 1,221.39 48.8 1986–87 6.02 4.5 19.54 10.9 52.48 19.5 565.71 42.0 1,314.57 48.9 1987–88 6.71 4.7 22.32 11.7 54.01 18.8 599.56 41.8 1,398.39 48.8 1 Less child benefit where appropriate. 2 Both under 11.