§ Mr. Deakinsasked the Chancellor of the Exchequer what was the cost of tax relief on donations to charities, mortgage interest, life insurance premiums and pension contributions, respectively, as a proportion of gross domestic product (a) 10 years ago and (b) in the latest year for which figures are available.
§ Mr. MooreEstimates are as follows: 183W
Ratio (per cent.) of Direct Revenue Costs of Tax Relief to GDP Relief for 1974–75 1984–85 Donations to charities* 0.06 0.06 Mortgage interest 0.78 †l.08 Life insurance premiums‡ 0.17 0.22 Approved occupational pension schemes 0.38 0.54 Notes:
* The figures for charities consist of income tax repayments to charities in respect of deeds of covenant, higher rate relief on covenanted donations, and estate duty/capital transfer tax exemption of transfers to charities on death. No information is available on income which charities received without deduction of tax.
† Provisional.
‡ Life insurance premium relief was abolished for policies taken out after 13 March 1984, so the cost of relief for 1984–85 relates to policies taken out on or before that date.
║ The estimates of tax relief for pension schemes depend on the basis used. The figures given use the basis set out in the Inland Revenue's note of February 1978 to the General Sub-Committee of the Expenditure Committee (Second Report, 1977–78, Appendix 15). This is the only basis for which comparable figures for 1974–75 and 1984–85 are available.