HC Deb 22 February 1999 vol 326 cc81-2W
Mr. Maclean

To ask the Chancellor of the Exchequer how many(a) businesses and (b) individuals are affected by the abolition of the foreign earnings deduction announced in the 1998 Budget; and in each case, if he will estimate the average annual cost. [70654]

Dawn Primarolo

[holding answer 15 February 1999]There is no information available on the number of businesses that employ people who were affected by the abolition of the foreign earnings deduction.

All UK taxpayers are affected by the abolition of the foreign earnings deduction. The closing of this loophole means that ordinary taxpayers no longer have to make good the shortfall created by a minority of UK residents being able to escape tax on their income. The estimated number of employees who have lost the advantage they previously enjoyed as a result of the foreign earnings deduction is about 20,000. All those affected are simply put on an equal footing with other UK residents.