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Banking: Loss of Tax Revenue

Volume 697: debated on Tuesday 18 December 2007

asked Her Majesty’s Government:

What is their estimate of the reduction in tax revenue arising from United Kingdom banks and other institutions in the current fiscal year that will result from the losses in the American mortgage market, collateralised debt obligations and similar financial instruments. [HL980]

Table B8 of the 2007 Pre-Budget Report and Comprehensive Spending Review (Cm 7227) contains an updated estimate for the main components of public sector receipts for the current fiscal year, as well as the changes to the estimates of individual taxes since Budget 2007. These changes include the allowance made in the Pre-Budget Report for the impact of financial market turbulence on receipts from corporation tax and income tax and national insurance contributions, along with other factors. Updated estimates for tax receipts will be provided in Budget 2008.