HC Deb 05 February 1997 vol 289 cc611-2W
Mr. Pearson

To ask the Chancellor of the Exchequer if he will list the cost to the Exchequer in 1995–96 and the estimates available of likely costs in 1996–97 of(a) profit sharing schemes, (b) save as you earn share option schemes and (c) company share option plans; and if, for each of the above, he will list (i) the number of schemes registered and (ii) the number of people covered by these schemes. [13386]

Mr. Jack

Available information is given in the tables.

Estimated cost of tax reliefs1
£ million
1995–96 1996–97
Approved profit sharing schemes 90 110
Approved savings related share option schemes2 180 200
1 Figures are particularly tentative and subject to a wide margin of error. Estimated costs are the effects on tax liabilities for each year, and not the receipts in each year.
2 Excluding cost of tax-free bonus on interest received under SAYE contract.
1995–96
Number of schemes approved in year Estimated number of live schemes at year-end1
Approved profit sharing schemes 43 868
Approved savings related share option schemes 116 1,174
Approved discretionary share option schemes/company share option plans 347 4,339
1 Excludes schemes where no further appropriations/grants of options were thought likely to occur.
1994–95 Number of employees receiving share allocations or to whom options were granted during the year (thousands)
Approved profit sharing schemes 640
Approved savings-related share option schemes 550

Company share option plans are not expected to have any costs until 1998–99.

The exact number of employees in each of these schemes cannot be precisely estimated because the available figures show only numbers of employees to whom shares were allocated or options granted in a particular year, and some employees may be allocated shares or granted options in successive years.

Estimates for take-up for 1995–96 are not yet available.

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