§ Mr. McCrindle
asked the Chancellor of the Exchequer how much would be saved by abolishing tax reliefs on pension contributions, life assurance premiums and mortgage repayments, respectively.
§ Mr. Moore
[pursuant to his reply, 28 October 1983, c. 217]: The direct yields of income tax from abolition of reliefs on pension contributions by employees, life assurance premiums and mortgage interest are estimated to be about £1,100 million, £690 million and £2,750 million, respectively at 1983–84 levels of income. There would, in addition, be savings of £13 million arid £55 million in respect of public expenditure (Class XIII Vote 7) on subsidies for life assurance premiums and mortgage interest for those not liable to income tax.
The Inland Revenue has recently published a research paper "Cost of Tax Reliefs for Pension Schemes: Appropriate Statistical Approach", which discusses the methodology for costing all tax reliefs for pension schemes and provides illustrative figures for four possible approaches.