§ Mr. CousinsTo ask the Chancellor of the Exchequer if he will place in the Library the rules of guidance for profit-related pay schemes drawn up by the Inland Revenue covering(a) the involvement in profit-related pay of schemes not based on companies, (b) restrictions on conversion of existing pay into profit-related pay, (c) the definition and calculation of profit in profit-related pay and (d) other relevant matters.
§ Mr. DorrellThe Inland Revenue publishes two booklets to help employers who would like to introduce a profit-related pay scheme which qualifies for tax relief. These are "Tax Relief for Profit-Related Pay: Notes for Guidance", PRP2, and "Tax Relife for Profit-Related Pay. Setting up a Scheme". I understand that a copy of both booklets is available in the Library.
§ Mr. CousinsTo ask the Chancellor of the Exchequer if he will publish a table showing the growth in numbers of profit-related pay schemes, and participants in profit-related pay with a regional breakdown of schemes; and if he will also estimate the revenue forgone in each year of profit-related pay together with the current year.
§ Mr. DorrellThe available information is in the table. The data are not centrally available to produce a regional breakdown of schemes. This could be provided only at disproportionate cost.
Live schemes as at Number of schemes Number of employee participants March 1988 616 90,000 March 1989 869 122,100 March 1990 1,175 232,000 March 1991 1,277 350,100 March 1992 2,597 718,100 March 1993 4,615 1,167,400 March 1994 7,039 1,794,100
Estimated cost of income tax relief for PRP 1987–88 1— 1988–89 10 1989–90 15 1990–91 25 1991–92 40 1992–93 200 1993–94 300 1994–95 n/y/a 1Negligible.