§ Mr. GibbTo ask the Chancellor of the Exchequer what amount of tax was reclaimed on bank and building society interest by(a) all people and (b) people aged 65 years or over in 1996–97, indicating (i) the average, (ii) the medium, (iii) the smallest and (iv) the largest amount reclaimed. [43338]
§ Dawn Primarolo[holding answer 1 June 1998]: The latest information is derived from the 1995–96 Survey of Personal Incomes. It is estimated that claims were received for the repayment of £110 million tax deducted from bank and building society interest that was paid or credited in 1995–96. The average amount claimed per claimant was £130 and the median was £60.
People aged 65 or over accounted for £65 million of these claims; for these people the average amount of tax claimed back was £140 and the median was £75.
Information is not available about the smallest and largest amounts claimed.
Tax was deducted from bank and building society interest at 25 per cent. in 1995–96.
§ Mr. GibbTo ask the Chancellor of the Exchequer if he will estimate the number of(a) people of all ages and (b) people aged 65 years or over who did not reclaim tax paid on bank and building society interest in 1996–97 and who were entitled to do so; and if he will indicate the average amount not reclaimed. [43340]
391W
§ Dawn Primarolo[holding answer 1 June 1998]: The Inland Revenue have no way of identifying most non-taxpayers, so estimates of the numbers of eligible people who have not claimed back tax on their bank or building society interest are not available from Inland Revenue sources. The external sources that have been used in the past to help provide rough estimates are now out of date.
People who know that they are likely to be non-taxpayers are able to register their bank and building society accounts to receive their interest without tax deducted.