HC Deb 16 February 2000 vol 344 cc615-6W
Mr. St. Aubyn

To ask the Chancellor of the Exchequer what has been the change in registered charities' receipts since the ending of the dividend tax credit in each year since 1997–98; and what is the estimated average in the current financial year and each of the next three financial years. [110110]

Miss Melanie Johnson

[holding answer 14 February 2000]: The withdrawal of payable tax credits on charities' dividend income did not come into effect until April 1999.

In recognition of their special position, charities will receive generous compensation through public expenditure in the form of a payment of a percentage of the dividends they receive. This will apply for five years from 6 April 1999 on a tapering basis.

The Charity Commission reports £19.75 billion of total annual income at the end of December 1998 in England and Wales (an average of £122 thousand, although nearly three-quarters of registered charities have an income of £10,000 or less).

The latest available figures from the Register show that at the end of September 1999 total annual income had risen to £22.4 billion (an average of £139 thousand). Forecasts of annual income are unavailable.