§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer what representations he has received about his proposed abolition of foreign income dividends. [8138]
§ Dawn Primarolo[holding answer 11 July 1997]: Several companies with major international interests have made representations concerning foreign income dividends. We wish to foster the United Kingdom's role as a centre for international business. As both the Chief Secretary and the Paymaster General have made clear, we are looking sympathetically at the position of UK groups with substantial foreign income.
§ Mr. GibbTo ask the Chancellor of the Exchequer if he will make a statement on the Government's plans regarding foreign income dividends. [8703]
§ Dawn Primarolo[holding answer 15 July 1997]: Payment of foreign income dividends will cease from 6 April 1999. However, in order to maintain the United Kingdom's role as a centre for international business, provision will be made in the next Finance Bill to ensure that international headquarters companies can continue to pay dividends out of foreign income without having to pay advance corporation tax.
In addition, as both the Chief Secretary and the Paymaster General have made clear, we are looking sympathetically at the position of UK groups with substantial foreign income.