§ Mr. JackTo ask the Chancellor of the Exchequer what estimates he has made for the financial years 167W 1997–98, 1998–99 and 1999–2000, of the tax yield for each of the measures enacted in the Finance Act 1997 aimed at closing tax loopholes. [3376]
§ Dawn PrimaroloThe information requested is shown in the following table.
Revenue effects of measures enacted in the 1997 Finance Bill aimed at closing tax loopholes £ million yield (+)/cost (-) of measure Changes from an indexed base Anti-avoidance and revenue protection measures 1997–98 1998–99 1999–2000 Inland Revenue Finance leasing of assets 80 150 150 Capital gains tax: treatment of securities 5 15 20 Stamp duty reserve tax bearer securities 50 50 50 Countering contrived claims to double taxation relief 1— 50 50 PAYE/NICs avoidance: payment in "own company" shares 110 30 30 Futures and Options—counter avoidance devices 1— 50 50 Artificial annuties paid by insurance companies 10 20 20 Tax relief for profit related pay—phased out 200 800 1,800 Capital allowances—long life assets 45 325 675 Relief for drilling production oil wells 1— 150 200 Customs and Excise Purchase of international supplies 1— 1— 1— VAT on supplies of Land and property 70 110 120 Insurance premium tax to 17.5 per cent, on insurance sold with certain goods and services 160 235 260 Bad debt relief 120 175 165 Telecommunications and similar services 5 10 10 Sale of donated goods 1— 1— 1— Charitable providers of care 1— 1— 1— Separation of businesses to get below VAT threshold 1— 1— 1— Notes:
1 Negligible effects on revenue amounting to less than £3 million a year.
The yields represent the estimated direct effect of the measures with the existing level of activity. Without these measures there could be a more significant loss of revenue in the future.