PENSIONERS AND DIVIDEND TAX CREDITS

Early day motion 56, tabled 30 November 1998 by Nick Gibb (Conservative). Signed by 109 members.

That this House notes that from April 1999, 300,000 non-taxpaying pensioners and 330,000 other non-taxpayers will lose an average of ú75 each because of the Government's decision to abolish the dividend tax credit; further notes that 80,000 of the pensioners affected will lose over ú100 per year; considers that it is unacceptable that basic rate taxpayers and higher rate taxpayers are unaffected directly by this decision which only affects non-taxpayers, half of them poor pensioners, who by definition must be poorer than taxpayers; calls on the Government to act on the promise made to the House of 30th June when the Paymaster General stated 'I am aware of the growing anxiety among poorer non-taxpayers who have been hit by the measure so I know that we need to make our position utterly clear as quickly as possible', Official Report, 30th June, column 175; calls upon the Government to now honour this pledge by announcing that non-taxpayers will be able to continue to reclaim a 10 per cent. tax credit from April 1999 in the same way as taxpayers who hold PEPs or ISAs will be able to do; and further notes that this is still a 50 per cent. cut from the current 20 per cent. dividend tax credit.

Signatures by party: Conservative 49, Liberal Democrat 29, Labour 23, Labour/Co-operative 5, UUP 2, Plaid Cymru 1.