§ Mr. AmessTo ask the Chancellor of the Exchequer whether Ministers in his Department have met nonprofit distributing health cash plan providers to discuss the recent decision of the Inland Revenue to change the tax treatment of health cash plan providers; what changes in the constitutional governance and trading practices of such providers gave rise to the change in their assessed status; and when those changes arose. [96778]
§ John HealeyMinisters have had no meetings to discuss the tax treatment of health cash plan providers.
The Inland Revenue's inquiries into the tax returns of non-profit distributing health cash plan providers concluded that they were not meeting all the conditions for mutual trading and their mutual status for tax purposes was not justified. However, the Inland Revenue did not consider any changes of the sort described.
§ Mrs. CaltonTo ask the Chancellor of the Exchequer what estimate he has made of how many individuals make contributions to health cash plans operated by non-profit-distributing organisations; and what assessment he has made of the impact on the charitable giving policies of such funds of recent changes in their tax treatment. [97606]
§ John HealeyInquiries by the Inland Revenue discovered that health cash plan providers were not meeting all the conditions for mutual trading and their mutual status for tax purposes was not justified.
No estimate has been made of the number of contributors.
213WNo assessment has been made of the impact of these changes which depend largely on decisions taken by individual health cash plan providers.
§ Mr. DrewTo ask the Chancellor of the Exchequer (1) if he will make a statement on the impact on NHS projects that have previously received donations from not-for-profit providers of health cash plans of the changes resulting from the proposed introduction of corporation tax on operating surpluses; [98605]
(2) if he will make a statement on what assessment he has made of the impact on those individuals who are contributing towards health cash plans of the proposals of the Treasury to impose corporation tax on operating surpluses. [98606]
§ John HealeyHealth cash plan providers were exempt from corporation tax as they were regarded formally as trading mutually.
Following a review in 2000, the Inland Revenue concluded that these organisations did not meet all the conditions for mutual trading and their exemption was therefore withdrawn for the future. However, individual providers had the option of changing their rules so that they could continue to benefit from the tax exemption. Where organisations have taken this option, the Revenue has accepted them as being mutual throughout.
No assessment has been made of the impact of these changes.
§ Mr. DrewTo ask the Chancellor of the Exchequer if he will make a statement on why the Treasury launched a review of the tax treatment of health cash plans; and how he estimates this will impact on(a) policy holders and (b) recipients of charitable donations from those plans. [98607]
§ John HealeyThe Inland Revenue has a right to inquire into any Self Assessment return, including those of health cash plan providers.
An inquiry into one of these organisations discovered that the conditions of mutual trading were not being met and therefore their mutual status was not legally valid and had to be withdrawn for tax purposes.
Further inquiries were subsequently carried out into the tax returns of other such organisations by the Inland Revenue. The Treasury conducted no review.
The Inland Revenue has to apply the law as it stands to ensure that organisations do not have favoured treatment to which they are strictly not entitled.
No assessment has been made of the impact of these changes, which depend largely on decisions taken by individual health cash plan providers.
§ Mr. DrewTo ask the Chancellor of the Exchequer whether representatives from the Treasury met representatives of the health cash plan industry to discuss the impact of proposed changes in health cash plans which will involve the introduction of corporation tax on their operating surpluses. [98603]
§ John HealeyNeither Ministers nor officials from the Treasury have held such a meeting. However, Inland Revenue officials have met with the British Health Care Association.
214W
§ Mr. DrewTo ask the Chancellor of the Exchequer if he will list the NHS projects that have received donations from not-for-profit providers of health cash plans in the latest year for which figures are available. [98604]
§ John HealeyThe information requested is not available.