§ Mr. PikeTo ask the Chancellor of the Exchequer what representations he has received regarding the review of tax treatment for charities. [51656]
§ Dawn PrimaroloThere has been an excellent response to the first phase of the Review of Charities' Taxation. Over 3,000 letters were received.
§ Mr. PikeTo ask the Chancellor of the Exchequer what changes have been considered as part of the review of the tax treatment of charities. [51725]
§ Dawn PrimaroloOver 3,000 responses were received to the first phase of the Review of Charities' Taxation. All these contributions are currently being analysed and will inform a public consultation document.
§ Mr. PikeTo ask the Chancellor of the Exchequer what changes have been proposed in the review of the tax treatment of charities; and if he will make a statement. [51726]
Accounting and other adjustments in table A2 of the Comprehensive Spending Review £ billion 1993–94 1994–95 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–01 2000–02 1 Non-trading capital consumption 3.3 3.3 3.5 3.7 3.9 4.3 4.4 4.6 4.8 2 VAT refunds 3.5 4.6 4.8 4.8 4.9 4.9 5.1 5.4 5.6 3 Pension increase payments 1.4 1.4 1.4 1.6 1.7 1.8 1.8 1.9 2.0 4 Superannuation charges 1.7 1.8 1.9 2.3 2.3 2.4 2.5 2.5 2.6 5 Income tax credits 0.4 0.3 0.2 0.2 0.2 0.2 1.3 4.1 4.5 6 Other spending in AME 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 7 Adjustments for Public Corporations 2.1 2.3 2.6 1.6 3.0 3.3 3.6 3.9 4.2 8 Intra-public sector debt interest -2.6 -2.2 -2.4 -2.3 -2.4 -2.2 -2.1 -2.1 -2.0 9 Capital transfer receipts -0.2 -0.1 -0.2 -0.2 -0.2 -0.2 -0.2 -0.2 -0.2 10 Financial transactions in DEL and AME -0.5 0.7 1.8 1.8 -0.2 -0.9 -1.0 -1.4 -1.6 11 Other accounting adjustments -0.6 -0.2 0.0 -0.4 0.4 -0.3 -0.2 -0.1 -0.1 Total 8.6 12.1 13.8 13.2 13.7 13.4 15.3 18.8 20.0 Notes:
1. Adds the value of general government non-trading capital consumption
2. Removes the deduction of VAT refunded to central government departments and local government. Departmental Expenditure Limits and Annually Managed Expenditure programme expenditure is measured net of these refunds, while Total Managed Expenditure is recorded including the VAT paid. Adds VAT refunded to NHS trusts, BBC and ITN in respect of contracted out services for non-business purposes. Also adds VAT refunds to DIY housebuilders
3. Adds the pension increase elements of the pensions paid to members of the teachers and National Health Service superannuation schemes
4. Deducts the accruing superannuation liability charges for the civil service, armed forces and security and intelligence services superannuation schemes, and adds pensions in payment
5. Adds income tax credits which score as public expenditure under current national accounting conventions—largely payments to non-taxpayers. Includes parts of Mortgage Interest Relief, Life Assurance Premium Relief, and (from 1999–2000) Working Families' Tax Credit and Disabled Persons' Tax Credit
6. Includes the Valuation Office and Financial Services Authority
7. Accounting adjustments to move to a national accounts basis for scoring public corporations current and capital spending; adds capital expenditure and debt interest payments outside the public sector and removes capital grants from general government
8. Removes intra-public sector debt interest and dividend payments and receipts which are included elsewhere in Departmental Expenditure Limits and Annually Managed Expenditure
9. Deducts public sector capital transfer receipts, which are netted off in Total Managed Expenditure
10. Deducts those financial transactions which are scored in Departmental Expenditure Limits and Annually Managed Expenditure
11. Other adjustments include, amongst others, the deduction of grants paid to local authorities by non-departmental public bodies classified to the central government sector and the inclusion of licence fees and visa receipts netted off in Departmental Expenditure Limits