Tax expenditures and ready reckoners

           
TB.1 - Cost of Minor (1) tax allowances and reliefs (2)
             
Amounts: £ million
 
Estimated cost for
Estimated cost for
 
 
 
2001-02
2002-03
2001-02
2002-03
Income tax      
Widow's bereavement allowance(3)
5
5
Expenditure on property managed
       
as one estate
neg
neg
   National insurance contributions    
Farming etc averaging of profits
15*
15*
   Approved discretionary/company share option    
Post-trading expenditure
neg
neg
   plan (7)
10*
10*
             
Exemption of:
 
Income tax and corporation tax (8)
First £70 of National Savings Bank
 
Rollover relief for balancing charges on ships
5*
5*
ordinary account interest
neg*
neg*
  
Save as you earn
30
30
  
Corporation tax
Short-term lower rate incapacity benefit (5)
10*
20*
   Corporate Venturing Scheme
neg
neg
Certain personal incidental expenses
20*
20*
   Tonnage tax: an optional alternative regime for    
Charitable donations under the payroll
      shipping companies
25
35
giving scheme
25*
30*
  
Relief to investment companies for losses on
   
Student maintenance awards
10*
10*
  
unquoted shares in trading companies
10*
10*
Child special allowance
neg
neg
   Relief for clearing contaminated land(9)
10
20
Guardian's allowance
neg
neg
  
Petroleum revenue tax (10)
NI benefit child dependancy additions
15*
15*
   Relief for exploration and appraisal expenditure
35
35
Severe disablement allowance
10*
10*
  
Cross field allowance
neg
neg
Allowances to rehabilitees
neg
neg
  
Relief for research expenditure
5
10
Maternity allowance (5)
10
10
  
Unrelieved field loss
10
10
£10 Christmas bonus for pensioners
10*
10*
        
Pensions and annuities paid to holders
 
Capital gains tax
of the Victoria Cross and certain other
 
Relief for trading losses against capital gains (11)
15*
15*
gallantry awards
neg
neg
        
Children's allowance to Forces' widows
neg
neg
  
Inheritance tax
Benefit of medical expenses paid by employer
     
Quick succession relief
5*
5*
when employee falls sick when abroad
neg
neg
  
Taper relief on transfers between three to
Widows' payments
5*
5*
  
seven years before death
10*
10*
Benefit of alterations to accommodation by
 
Double taxation relief
neg
neg
reason of employment
neg
neg
  
Woodlands relief
neg
neg
Special security measures
neg
neg
   Relief for heritage property (12)
10*
30*
Certain expenses of MPs
neg
neg
        
*These figures are particularly tentative and subject to a wide margin of error.

Footnotes

  1. Only tax allowances and reliefs costing less than £50 million in both years are included here. Other reliefs for which the cost can be estimated are given in table T1.5.
  2. These figures fall outside the scope of National Statistics.
  3. This allowance has been withdrawn for deaths occuring after 5 April 2000.
  4. Excludes taxable Statutory Sick Pay which is payable in most cases for the first twenty-eight weeks of sickness.
  5. Excludes taxable Statutory Maternity Pay
  6. Relief for mortgage interest payments was removed from 6 April 2000. Relief for those aged 65 and over who took out loans to buy a life annuity ( a home income plan ) ended with effect from 9 March 1999, but existing loans will continue to qualify for the remainder of the loan period.
  7. Since 6 April 1999, National Insurance has been payable by both employer and employee on the gains arising when share options are excercised outside an Inland Revenue approved scheme ( or are cancelled or assigned ) and where the shares or the options are readily converted into cash.
  8. Included in capital allowances figures in the table T1.5.
  9. Companies that acquire land in a contaminated site will be able to claim an accelerated repayable tax credit on any additional site preparation cost for cleaning up the land for accounting periods ending on or after 1 April 2001.
  10. The figures are net of any consequential effect on corporation tax and represent the effect on calendar year accruals in 2001 and 2002.
  11. The figures take into account the subsequent effect on income tax liability of the earlier use of trading losses against capital gains.
  12. This is the cost of claims processed in the year, including the cost of conditional exemption, maintenance funds and property transferred by acceptance in lieu and private treaty sale arrangements. Figures can vary considerably from one year to another.
 
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