asked the Chancellor of the Exchequer, further to his reply of 8 March, OfficialReport, c. 296, concerning tax exemption for overseas holders of gilt-edged stocks, whether he will give an estimate of the nominal value of such stocks held by overseas residents, showing separately those on which dividends are paid gross, together with the value of the exemption granted by the inspector of foreign dividends.
As reported in the Bank of England Quarterly Bulletin published in December 1981, the nominal value of gilt-edged stock held by overseas residents at 31 March 1981 is estimated at £7,451 million. Dividends on approximately half of this amount, are paid gross—that is, are exempted from deduction of tax at source.The value of the tax exemption given by the inspector of foreign dividends either at source or by repayment in the year to 31 March 1981 on securities within section 99 of the Taxes Act 1970 was £128·4 million. For the same period, the value of exemption given at source on other gilt-edged stock under double taxation agreements is estimated at £8 million. I am afraid that an estimate of the tax repaid by virtue of double taxation agreements could only be obtained at disproportionate cost.