§ Mr. MeacherTo ask the Chancellor of the Exchequer what is the value of tax relief on pensions, savings/ investment for and payment of, to(a) individuals, and (b) employers for the latest available year given the figures broken down by (i) occupational and (ii) private provision, if available.
§ Mr. Ryder[holding answer 23 July 1990]: The latest estimates in respect of 1989–90 of the reductions in tax liabilities arising from the individual tax reliefs related to pensions schemes are shown in the table:
£ million Relief for: Employees' contributions to occupational pension schemes2 1,800 Employers' contributions to occupational pension schemes2 3 13,100 Investment income of occupational pension schemes2 4 4,100 Lump sum payments to pensioners2 4 1,000 Contributions to personal pensions (including retirement annuity premia and FSAVCs)3 5 800 1 This figure is particularly tentative and subject to a wide margin of error. 2 The total cost of tax reliefs for pension schemes cannot be calculated by adding together the costs of individual reliefs as this would imply a considerable degree of multiple taxation. 3 On the basis that under present arrangements employers' contributions are not taxable as a benefit in kind of the employee. 4 Assuming relief at the basic rate of income tax. 5 It is not possible to provide reliable estimates of the cost of exemption for investment income and lump sum payments related to retirement annuity contracts.