§ Mr. Paul Dean
asked the Chancellor of the Exchequer (1) whether there will be an Exchequer contribution to the miners' early retirement scheme; if so, how much; whether any employees' contributions will be tax deductible; and whether the benefits will be taxable.
(2) whether the miners' early retirement scheme requires Inland Revenue approval; and, if so, whether he will 273W publish the terms of the approval and the relevant statutory provisions;
(3) whether the benefit entitlement of members of the miners' superannuation scheme as approved by the Inland Revenue will be affected by the early retirement scheme; and, if so, how;
(4) whether the £500 lump sum payment proposed under the miners' early retirement scheme will be taxable or tax free; and under what statutory provision.
§ Mr. Robert Sheldon
, pursuant to his reply [Official Report, 14th February 1977; Vol. 926, c. 101], gave the following answer:
The Exchequer will not be helping to meet the cost to the Mineworkers' Pension Scheme of the new retirement arrangements. Under the Finance Act 1970, supperannuation schemes require the approval of the Board of Inland Revenue in order to qualify for the tax treatment which it provides. Similarly, proposed changes are required to conform with the Inland Revenue rules for this treatment to continue, and this will apply to the mineworkers' scheme like any other. The Act provides for tax relief for employees' ordinary annual contributions and, for the payments within limits, of lump sum benefits which will be exempt from tax. Pensions payable under approved schemes are taxable.
Questions relating to a particular scheme are a matter between the administrators of the scheme and the Board of Inland Revenue.