DVLA profits

Dear Mr Smith,

Freedom of information request

Thank you for your request for information. Your request was received
on 29 June 2009 and I am dealing with it under the terms of the Freedom
of Information Act 2000.

If you have any queries about this letter, please quoting the reference
number: FOIR1569 in any future communications.

Yours sincerely

FOI - DVLA

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2009 10:59 >>>
Dear Sir or Madam,

Your company's accounts show an operating surplus (profit) of
some
22 million pounds for the fiscal year 07-08. Would you please
answer the following questions regarding this profit:

a)Is DVLA taxed on these profits?

b)As I understand it, these profits are held in an account with
HM
Treasury. Are these funds available for use by the Treasury for
general public expenditure (i.e. The National Health Service,
Defence spending, servicing the National Debt) or are they
'ring-fenced' for the sole use of the DVLA/Dept. of Transport?

Yours faithfully,

Andrew: Smith

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Dear Mr Smith,

Freedom of information request

Your request was received on 29 June 2009 and I am dealing with it under the terms of the Freedom of Information Act 2000 (FOIA).

In the first part of your question you asked is DVLA taxed on the operating surplus (profit) for the fiscal year 2007-08.

As a Trading Fund, DVLA does not pay tax on the surplus (profit) it makes. Trading funds are required to earn and pay over an agreed rate of return to their sponsoring departments or directly to the relevant authority. The cost of capital charge applies to all assets and liabilities in the balance sheet, with liabilities attracting a negative charge (i.e. a credit). Applying the capital charge to all assets and liabilities ensures an appropriate return on the taxpayers+IBk equity (capital and reserves) on the balance sheet. The cost of capital charge is normally set at a real rate by HM Treasury currently the standard rate is 3.5% for all assets and liabilities.

You also asked are these funds held by HM Treasury available for use by the Treasury for general public expenditure (i.e. The National Health Service, Defence spending, servicing the National Debt) or are they 'ring-fenced' for the sole use of the DVLA/Dept. of Transport?

DVLA retains the surplus it makes each year in order to sustain its Trading Fund Operations, as projected in the original Trading Fund Order and agreed with HM Treasury. The surpluses are recognised as fees collected in advance of services delivered.

The Agency does however collect Consolidated Fund Extra Receipts (CFER+IBk-s) i.e. Sale of Marks, Cherished Transfer Fees etc., which are paid over directly to HM Treasury for use on general public expenditure.

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Most documents supplied by the Driver and Vehicle Licensing Agency will have been produced by government officials and will be Crown Copyright. You can find details on the arrangements for re-using Crown copyright on the Office of Public Sector Information website at: http://www.opsi.gov.uk/click-use/index.htm.

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If you have any queries about this letter, please contact this email address. Please remember to quote the reference above in any future communications.

Yours sincerely,

FOI
DVLA

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Dear Sir or Madam,

Your company's accounts show an operating surplus (profit) of some
22 million pounds for the fiscal year 07-08. Would you please
answer the following questions regarding this profit:

a)Is DVLA taxed on these profits?

b)As I understand it, these profits are held in an account with HM
Treasury. Are these funds available for use by the Treasury for
general public expenditure (i.e. The National Health Service,
Defence spending, servicing the National Debt) or are they
'ring-fenced' for the sole use of the DVLA/Dept. of Transport?

Yours faithfully,

Andrew: Smith

show quoted sections