Written question asked by Lord Lancaster of Kimbolton (Conservative) on Wednesday, 21 October 2009, in the House of Commons. It was due for an answer on Monday, 26 October 2009. It was answered by Bill Rammell (Labour) on Thursday, 29 October 2009 on behalf of the Ministry of Defence.

Ascension Island

Question: To ask the Secretary of State for Defence what progress he has made in his discussions with the Secretary of State for Foreign and Commonwealth Affairs on future funding arrangements for Ascension Island.

Answer: The decision by the Ascension Island Government to remove a variation in the Ministry of Defence's annual property tax liability, which had the effect of almost doubling the amount, is currently being disputed. The MOD, therefore, has not paid this new tax liability in full.Discussions are ongoing in order to seek an agreement that is fair and equitable, and assurance that the services received from the Ascension Island Government represent best value for money. The Ascension Island Council has commissioned an HMRC-led study, supported by the Foreign and Commonwealth Office, into tax arrangements on Ascension Island. The Ministry of Defence is being consulted as part of this study.

Secondary information