HC Deb 14 June 1993 vol 226 cc400-1W
Mr. Andrew Smith

To ask the Chancellor of the Exchequer (1) if he will estimate the number of employees for whom removal expenses and benefits exceeded(a) £6,000, (b) £8,000, (c) £10,000, (d) £12,000, (e) £14,000, (f) £16,000, (g) £18,000 and (h) £20,000 in the latest year for which figures are available;

(2) if he will estimate the yield to the Exchequer of limiting tax relief for removal expenses and benefits to (a) £6,000, (b) £8,000, (c) £10,000, (d) £12,000, (e) £14,000, (f) £16,000, (g) £18,000 and (h) £20,000 in 1994–95.

Mr. Dorrell

[holding answer 11 June 1993]: There is no comprehensive statistical data source from which such estimates could be calculated. On the basis of estimates of the total number of employer-assisted relocations from survey and administrative data sources, and reasonable estimates of the likely levels of expenses in 1993–94, the following tentative estimates can be made. These are all based on the Budget proposals for the reform of tax relief for relocation packages with the corresponding limits substituted for the proposed level of £8,000.

Threshold for removal expenses and benefits (excluding loss on sale payments) £ Numbers subject to tax for 1993–941 2 (thousands) Income tax yield3 in 1994–954 £ million
6,000 100 300
8,000 100 200
10,000 75 150
12,000 50 150
14,000 50 100
16,000 50 100
18,000 50 100
20,000 25 50
1 Excluding employees covered by transitional arrangements—estimated to be one third of those moving and receiving relocation assistance in 1993–94.
2 Numbers of employees receiving "loss on sale" payments, additional housing cost payments, or receiving eligible removal expenses and benefits in excess of the stated levels.
3 Including tax on payments for losses on sale.
4 In respect of payments in 1993–94.

Mr. Andrew Smith

To ask the Chancellor of the Exchequer if he will estimate the number of employees for whom tax relief for removal expenses and benefits were claimed in each year since 1987.

Mr. Dorrell

[holding answer 11 June 1993]: Available estimates of the numbers of employees whose employers made payments towards removal expenses and who benefited from tax relief under extra statutory concession A5 are as follows:

Thousands
1987 200
1988 175
1989 200
Thousands
1990 200
1991 175

These figures are based on information from labour force surveys for United Kingdom moves and Inland Revenue data for international relocations.

Mr. Andrew Smith

To ask the Chancellor of the Exchequer if he will estimate the number of employees moving because of(a) a job transfer with an existing employer and (b) to take up new employment, who benefited from assistance with removal expenses in the latest year for which figures are available; and what was the total tax relief available to employees in each category in that year.

Mr. Dorrell

[holding answer 11 June 1993]: Approximate estimates in respect of 1991–92, the latest year for which data are available, are given in the table. Estimates of the relevant numbers of employees relocating in the United Kingdom are based on the 1991 labour force survey and those for international moves are based on administrative data. The revenue costs of tax relief—under extra statutory concession A5—are based on reasonable assumptions about the levels of payments and are very tentative.

Number (thousands) Cost (£ million)
United Kingdom moves:
With same employer 120 600
To new employer 40 100
International moves 15 100
Total 175 800

Outgoing from: Incoming to:
B DK D GR E F IRL I L NL P UK
B 2.53 1.93 2.68 2.53 1.93 1.93 2.53 2.31 1.64 2.53 1.93
DK 1.59 1.43 1.43 1.80 1.59 1.59 1.80 1.59 1.59 1.80 1.59
D 1.76 1.76 1.76 1.76 1.76 1.76 1.76 1.76 1.76 1.76 1.76
GR 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88
E 3.02 3.02 3.02 3.02 3.02 3.02 3.02 3.02 3.02 3.02 3.02
F 1.97 1.97 1.97 1.97 1.97 1.97 1.97 1.97 1.97 1.97 1.97
IRL 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.06
I 2.18 2.18 1.94 1.94 2.18 1.94 2.57 1.94 2.18 2.57 2.18
L 1.12 1.62 1.62 1.62 1.62 1.62 1.62 1.62 1.12 1.62 1.62
NL 1.50 1.50 1.50 1.98 1.98 1.50 1.98 1.98 1.50 1.98 1.50
P 2.89 2.89 2.89 2.89 2.72 2.89 2.89 2.89 2.89 2.89 2.89
UK (BT) 1.48 1.48 1.48 1.48 1.48 1.48 1.42 1.48 1.48 1.48 1.48
UK (Mercury) 1.45 1.45 1.45 1.45 1.45 1.45 1.34 1.45 1.45 1.45 1.45

Source: Commission Communications "Towards Cost orientation and the Adjustment of Pricing Structures" updated 1 February 1993.

This table shows that the United Kingdom has the cheapest outgoing call charges to other member states in seven out of 11 cases and is second cheapest in the four other instances.