§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
How much income charities in the United Kingdom have lost in the financial year 1999–2000 from the reduction in dividend tax credits on their ordinary and preference shareholdings; and [HL3176]
How much income charities in the United Kingdom have lost in the financial year 2000–01 from the reduction to 17 per cent in dividend tax credits on their ordinary and preference shareholdings; and [HL3177]
How much income they estimate that charities in the United Kingdom will lose in each of the financial years 2001–02, 2002–03, 2003–04 and 2004–05 from the phased reduction in dividend tax credits on ordinary and preference shares if their shareholdings and the total amount of net dividends declared on them remain as they were in the most recent financial year for which statistics are available. [HL3178]
§ Lord McIntosh of HaringeyThe effect on the income of charities will depend on how they have managed their investments since 1997 when the reforms of corporation tax were announced. It is not possible accurately to measure the effect on charities as they will have rebalanced their portfolios and the economy in general should have benefited. To give time for the benefits of the reforms to feed through and for charities to make any necessary adjustments to their investment strategies the withdrawal was deferred from charities until April 1999 and is being phased in with a transitional relief payable over a further five years. Altogether, this compensation package is worth over £1 billion.