§ Mr. Kenneth Carlisleasked the Chancellor of the Exchequer (1) in relation to approved profit sharing schemes under the Finance Act 1978 what would be the estimated costs of the tax reliefs in the financial year 1979–80 if the retention period was reduced to three years, and income tax was charged at 50 per cent. of the original value of the shares between three and four years, at 25 per cent. between four and five years, with no tax payable after five years;
(2) in relation to the approved profit sharing scheme under the Finance Act 1978 what would be the estimated cost of the tax reliefs in the financial year 1979–80 if the retention period was reduced to one year, and income tax was charged at 50 per cent. of the original value of the shares between one and two years, at 25 per cent. between two and three years, with no tax payable after three years;
(3) in relation to the approved profit sharing schemes under the Finance Act 1978 what would be the estimated cost of the tax reliefs in the financial year 1979–80 if the maximum value of shares appropriated to each employee was raised to £1,000 in any one tax year;
(4) what is the estimated cost of the tax reliefs in the financial year 1979–80 arising from the operation of the approved profit sharing schemes under the Finance Act 1978;
(5) what has been the cost to the Revenue to date of the profit sharing 372W schemes so far approved under the Finance Act 1978.
§ Mr. Peter Rees[pursuant to his replies, 21 January 1979, c. 30–31]: The loss of revenue as a result of profit sharing schemes depends on the number of employees participating in such schemes, the value of share allotted to these employees, and the length of time for which the shares are held.
I regret that such information is not yet available for schemes set up in 1979–80 under the Finance Act 1978 and it is not possible to estimate the costs of alternative schemes.