§ Mr. Pawsey
asked the Chancellor of the Exchequer what would be the cost of giving income tax relief at the basic rate to members of group medical schemes, run by employers, earning more than £8, 500 per annum and in addition giving tax relief at the basic rate to private medical insurance premiums and group schemes run by employers.
§ Mr. Ridley
I assume that my hon Friend's question relates to the cost ofAt 1981–82 levels the cost of exempting higher paid employees from the tax charge would be of the order of 293W £30 million and of giving relief to individual subscribers and other members of group schemes of the order of £25 million.
- (a) exempting from the charge to basic rate (but not higher rate) tax under Schedule E medical insurance premium paid by employers for the benefit of directors and employees earning £8, 500 a year or more and
- (b) giving basic rate tax relief in respect of premiums paid on their own behalf by all individual subscribers or members of group schemes.