Ascension Island

House of Lords written question – answered at on 12 November 2009.

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Photo of Lord Jones of Cheltenham Lord Jones of Cheltenham Liberal Democrat

To ask Her Majesty's Government, further to the Written Answer by Baroness Taylor of Bolton on 3 November (WA 33), whether, if the HM Revenue and Customs study leads to a significant reduction in levels of taxable income for the Government of Ascension Island, they will include Ascension Island among the British Overseas Territories receiving grant aid and other subsidies.

Photo of Baroness Kinnock of Holyhead Baroness Kinnock of Holyhead Minister of State, Foreign and Commonwealth Office, Minister of State (Africa and UN)

An independent review, commissioned by the Ascension Island Government, is currently being undertaken.

The purpose of the review was to provide advice on alternative taxation regimes appropriate to Ascension's circumstances and also to provide advice on alternative non-taxation options such as levies or charges. Any alternative proposal will need to generate sufficient revenue to meet the provision of common services on Ascension. In line with government policy on the overseas territories, it is not envisaged that Ascension Island will receive budgetary support or grant aid but that it should remain self-financing—that is, with costs met by those using the island.

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