Falkland Islands

HC Deb 27 February 1987 vol 111 c428W

Mr. Dalyell

asked the Secretary of State for Foreign and Commonwealth Affairs what is the level of income tax in the Falkland Islands; what information he has as to the levels of banking and commercial secrecy; if he has any evidence of use of the Falkland Islands as a tax haven; and if he will make a statement.

Mr. Eggar

In the current financial year, personal income tax in the Falkland Islands is chargeable as follows:

	Per cent.
On the first £500 of chargeable income	20
On the next £500 of chargeable income	25
On the next £6,500 of chargeable income	30
On the next £2,500 of chargeable income	40
On the remainder of chargeable income	50

Deductions that may be claimed:	£
Personal income	2,100
For wife	1,200
Wife's earned income relief	12,100
Dependent relative	650
Insurance premium or pension fund contribution	2
1 Maximum.
2 Up to one-sixth of total income after deducting wife's earned income relief.

Banking in the Falkland Islands is regulated by the 1972 Ordinance no. 7 for the licensing and control of banking in the colony. A copy and subsequent amendments have been laid in the Library of the House. We have no evidence of the use of the Falkland Islands as a tax haven.