§ Mr. Edward DaveyTo ask the Chancellor of the Exchequer what estimate he has made of the yield from the proposed abolition of income spreading rules contained in "Reform of the Taxation of Intellectual Property". [124041]
§ Dawn PrimaroloIf income spreading were abolished, the additional tax yield would be negligible.
The Inland Revenue will shortly be publishing a Technical Note on the tax treatment of intangible assets (including intellectual property) and goodwill.
The Note will include further consideration of the income spreading rules.
§ Mr. Edward DaveyTo ask the Chancellor of the Exchequer which other countries operate a tax similar to the exit charge for owners of intellectual property proposed in "Reform of the Taxation of Intellectual Property". [124043]
§ Dawn PrimaroloA number of countries apply exit charges under certain circumstances.
The proposal for an exit charge included in the 1999 Inland Revenue Technical Note, "Reform of the Taxation of Intellectual Property", was based on similar provisions which already apply in the case of capital gains tax. It was intended to ensure that existing safeguards against abuse remained in place if intellectual property assets became subject to tax as income instead of capital.
The Inland Revenue will shortly be publishing, for consultation, a Technical Note on the tax treatment of intangible assets (including intellectual property) and goodwill. The Note will include further consideration of the safeguards that would be needed under a reformed regime.
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§ Mr. Edward DaveyTo ask the Chancellor of the Exchequer what estimate he has made of the yield from the proposed exit charge on owners of intellectual property contained in "Reform of the Taxation of Intellectual Property" [124042]
§ Dawn PrimaroloNo detailed information is available as to the likely yield from such an exit charge. The aim of the charge would be, to protect revenue by discouraging avoidance rather than to target additional yield.
The Inland Revenue will shortly be publishing, for consultation, a Technical Note on the tax treatment of intangible assets (including intellectual property) and goodwill. The Note will include further consideration of the safeguards that would be needed under a reformed regime.
§ Mr. Edward DaveyTo ask the Chancellor of the Exchequer (1) what representation he has received following the publication of the Inland Revenue paper, "Reform of the Taxation of Intellectual Property"; [124040]
(2) which organisations the Treasury has consulted directly with respect to the Inland Revenue paper, "Reform of the Taxation of Intellectual Property".[124039]
§ Dawn PrimaroloThe Inland Revenue's Technical Note, "Reform of the Taxation of Intellectual Property", was circulated widely and more than 80 responses were received. The Inland Revenue also consulted directly with a number of representative bodies and other interested parties.
The outcome of these consultations will feed into the further Technical Note which the Inland Revenue will be publishing shortly. This further note will seek views on possible reform covering a wider range of intangible assets and goodwill.