§ Mr. GunnellTo ask the Chancellor of the Exchequer (1) what estimate he has made of the cost of pension equity plans schemes to the Exchequer in the current financial year; what it was in 1994–95 and 1995–96; and what he estimates it will be in 1997–98; [4812]
(2) what estimate he has made of the cost of venture capital trust schemes from the inception of VCT until the end of the current financial year; and what he estimates it will be in 1997–98; [4813]
(3) what estimate he has made of the cost of Tax-exempt special savings account schemes to the Exchequer in the current financial year; what it was in 1994–95 and 1995–96; and what he estimates it will be in 1997–98. [4814]
§ Mr. JackThe available information is in the table:
Estimated cost of tax relief1 £million 1994–95 1995–962 1996–972 PEPs3 325 450 600 TESSAs4 350 450 350 VCTs5 — 50 80 1These estimates give the cost of tax relief on an accruals basis. The figures are tentative and subject to a wide margin of error. 2Provisional. 3Including the CGT cost of capital gains with PEPs. 4The cost of TESSAs falls for 1996–97 due to the reduction in tax charge on savings income from the basic rate to the lower rate and the introduction of follow-up accounts starting with only the capital (but none of the interest or bonuses) from the first TESSA. 5Including the CGT costs of deferral reliefs and exempting gains from tax. The costs for 1997–98 will depend on future levels of take-up and rates of investment return.