§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer (1) if he will estimate the effect on Treasury revenues in 1991–92 and in a full year of reducing the investment limit for all new personal equity plans to £3,000;
(2) if he will estimate the cost to the Exchequer in 1991–92 of personal equity plans, giving separately figures for relief at the higher and basic rates of tax.
§ Mr. Maude[holding answer 30 April 1991]: The cost of income tax relief of personal equity plans is estimated as £45 million in 1991–92. The cost in 1991–92 will depend on take-up. Separate figures for higher rate and basic rate relief are not available.
If the investment limit for new personal equity plans had been limited to £3,000 in 1990–91, the cost would have been lower by about £3 million in that year.