Taxation: Avoidance

Debate between Lord Lexden and Lord Deighton

Wednesday 6th February 2013 Lords Chamber

[Lord Deighton]

The Government are prepared to legislate against tax avoidance in the area of charities law. In both 2004 and 2010, Governments legislated to do precisely that. I see this as two distinct areas. On the one hand, we need to create a tax regime which encourages an enterprise economy and giving to charity. On the other hand, the quid pro quo for that kind of positive environment is that people pay their taxes. I can assure the House that HMRC will pursue diligently those who seek to avoid tax.

[Lord Lexden]

In relation to the Question from the Labour Front Bench, will my noble friend note that independent schools provide far more in bursaries and means-tested scholarships than they receive in benefits through their charitable status?

[Lord Deighton]

I thank my noble friend for that important addition to the debate. I was not aware of that but I am delighted that he has been able to share it with the House.