HC Deb 06 November 2002 vol 392 cc291-2W
Pete Wishart

To ask the Chancellor of the Exchequer, how much money the Government have paid into the Thalidomide Trust since 1973; how much tax the Government have collected from payments from the Thalidomide Trust to thalidomide victims; what tax rate is applied to payments to thalidomide victims from the Thalidomide Trust; and if he will estimate the uptake of tax reclaim under the previous fiscal system by thalidomide victims who pay tax on money from the Thalidomide Trust. [79354]

Dawn Primarolo

[holding answer 4 November 2002]: The Government paid £5m into the Thalidomide trust in 1974, £800,000 in 1978, and £7m in 1996. Taxpayer confidentiality prevents the disclosure of specific details on how much tax the Government has collected from payments from the Thalidomide trust to thalidomide victims. As with other discretionary trusts, the trustees account for tax at 34 per cent. on the income they pay out. The beneficiaries are then subject to tax on this income in the normal way, and they may claim credit for the tax paid by the trustees. This tax treatment has not changed so it is not possible to estimate the uptake of tax reclaim under a previous fiscal system. Information on the numbers of thalidomide victims claiming tax repayment is not available.

Pete Wishart

To ask the Chancellor of the Exchequer, what recent meetings have been held between the Treasury and Thalidomide Action Group UK on the tax status of beneficiary payments from the Thalidomide Trust. [79356]

Dawn Primarolo

[holding answer 4 November 2002]: The Chancellor has not held any meetings recently with the Thalidomide Action Group UK on the tax status of beneficiary payments from the Thalidomide Trust.

Pete Wishart

To ask Mr. Chancellor of the Exchequer, how much direct compensation the Government have paid to thalidomide victims since 1972. [79355]

Dawn Primarolo

The Government have provided thalidomide victims with support from health and social services. In addition thalidomide victims benefit from payments from the Thalidomide Trust.