Schedule 4

Part of Finance (No. 2) Bill – in a Public Bill Committee am 6:30 pm ar 19 Hydref 2010.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Justine Greening Justine Greening The Economic Secretary to the Treasury 6:30, 19 Hydref 2010

Let me specifically address amendment 6. The presumption behind it is that the tax treatment of stock dividends will be different from that of cash dividends. That is not correct. Stock dividends will be treated in exactly the same way as the cash distributions, so there will be no loss to the Exchequer. In other words, the amendment proposing a report that charts the plus or minus for revenue is unnecessary because the change will have no revenue impact; it simply gives REITs more flexibility on how they make their distribution within their existing distribution requirement.

With regard to the baseline and the report that the hon. Gentleman wants to see showing the amount either way, that information is not available because there is such a wide range of investors involved that they would not specifically identify their PID income in a way that would allow us to collect the information centrally. We know that REITs have become the main tax vehicle for many of the companies involved in that area, so we can see the overall activity within the sector through REITs, but specific investor-level tax revenue implications are less clear. The answer to his underlying question about the difference to the Exchequer is that there is no difference.