§ Mr. Nigel GriffithsTo ask the Chancellor of the Exchequer, if he will give for 1988–89(a) the composite rate tax paid by zero rate taxpayers on interest from bank and building society accounts, (b) the number of zero rate taxpayers who are paying composite rate tax, (c) the total amount of composite rate tax paid by basic rate taxpayers and (d) the number of basic rate taxpayers paying composite rate tax on bank and building society accounts.
§ Mr. Norman LamontIn 1987–88, the latest year for which information is available, about £450 million of the composite rate tax accounted for by building societies, banks and other deposit takers was due in respect of interest that would not have been liable to tax in the hands of its recipients in the absence of a composite rate scheme, and about £3,050 million was due in respect of interest that would have been liable to tax.
I regret that the remainder of the information is not available in the form requested. But of accounts earning more than £1 interest in 1986–87, some of which were held by clubs or other non-individuals, 49 million are provisionally estimated to have been held by investors whose composite rate interest would be wholly liable to tax in the absence of a composite rate scheme, and 15 million to have been held by investors at least part of whose composite rate interest would be non-liable.