§ Mr. TrotterTo ask the Chancellor of the Exchequer how many individuals would be affected if relief for pension contributions were to be limited for income tax purposes to the standard rate; and what would be the total extra tax raised. [14869]
§ Mr. Jack[holding answer 10 February 1997]: The estimated full year yield of restricting income tax relief for pension contributions to the basic rate at 1997–98 income levels would be about £880 million. Some 2 million taxpayers would be affected. This is based on a projection of the 1994 survey of personal incomes and other survey data in line with the assumptions in the Budget forecast. It does not take account of any behavioural effects which might result from such a change.