HC Deb 25 March 1998 vol 309 cc209-10W
Mr. Fraser

To ask the Chancellor of the Exchequer what account the Government will take of the views of the charitable sector expressed through the review of charities' taxation in future discussions with other EC states on VAT social reliefs; and if he will make a statement. [35621]

Dawn Primarolo

One of the aims of the Review of Charities' Taxation is to inform the Government's negotiating position in any future EC discussions of VAT social reliefs. The contributions to the first phase of the review are currently being analysed and a consultation document will be issued later this Spring. A consultation process will follow during 1998. It is too early to speculate on the outcome of the review.

Mr. Fraser

To ask the Chancellor of the Exchequer what plans he has to reform the taxation of charities to take account of the representations of the Church of England in respect of VAT on repairs. [35744]

Dawn Primarolo

European law does not allow any VAT relief for church repairs.

Mr. Fraser

To ask the Chancellor of the Exchequer how many submissions to his review of charity taxation were received by 1 December 1997. [35622]

Dawn Primarolo

There were over 3,000 submissions to the first phase of the Review of Charities' taxation.

Mr. Fraser

To ask the Chancellor of the Exchequer what estimate he has made of the financial effect on UK charities of the phased withdrawal of tax credits on dividends over a five year period beginning in 1999. [35623]

Dawn Primarolo

What charities might lose will depend on the extent of their UK equity holdings in the years from 1999–2000, the level of dividend payments, and on assumptions about company performance and dividends had my right hon. Friend not undertaken his corporation tax reforms, including significant cuts in companies' tax burdens. Charities will enjoy generous compensation costing up to £1 billion, by reference to their dividend income for 1999–2000 to 2003–2004.