§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what assessment he has made of the possible impact of the introduction of the Individual Savings Account on the older saver. [32125]

§ Mr. Darling[holding answer 5 March 1998]: This will depend on a number of factors, including the choices savers make about how to invest their savings. However, the Government's aim with the ISA is to introduce a simple, flexible, accessible and fair tax-free savings environment and to spread the benefit of tax relief on savings to many more savers. We propose not to require cash investors to lock their savings away in order to qualify for tax relief.

§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what plans he has to allow older investors who have more than £50,000 in PEPs and TESSAs to transfer the whole value of their PEPs and TESSAs into an individual savings account. [32126]

§ Mr. Darling[holding answer 5 March 1998]: The Government will announce their proposals in due course.

§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer if he will estimate the additional cost of the tax relief planned for the individual savings account in(a) 1999–2000, (b) 2000–01 and (c) 2001–02, if the overall ISA investment limit of £50,000 is increased to (i) £60,000, (ii) £75,000 and (iii) £100,000, assuming no change in the annual investment limits; and if he will make a statement. [24570]

§ Dr. CableTo ask the Chancellor of the Exchequer what is the approximate number of people that would lose tax exemption, and what is the estimated tax revenue which would be achieved, if the upper savings limit under the ISA scheme were set at(a) £50,000, (b) £75,000, (c) £100,000 and (d) £200,000. [25262]

§ Mr. FallonTo ask the Chancellor of the Exchequer if he will estimate the cost of tax relief per annum of raising the transfer limit from TESSAs and PEPs to the new individual savings account to(a) £60,000, (b) £100,000 and (c) £150,000. [26231]

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§ Mr. Darling[holding answer 22 January 1998]: This would depend on how investors decided to invest their capital.

§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer if he will estimate the additional cost of tax relief on the individual savings account, for each of the next five years, of altering the proposals as set out in his consultative document of December 1997 so as to allow total individual holdings of PEPs and TESSAs as at 1 December 1997 to be transferred into the new individual savings account without regard to the £50,000 overall investment limit; and if he will make a statement. [24553]

§ Mr. Darling[holding answer 22 January 1998]: The effect on the cost of allowing investors to transfer all their PEP and TESSA investments into individual savings accounts would depend on how investors invest their capital.

§ Mr. GibbTo ask the Chancellor of the Exchequer if he will estimate the additional cost of allowing all existing personal equity plans to continue alongside the new individual savings accounts without being counted towards the £50,000 limit on investments. [31551]

§ Mr. Darling[holding answer 26 February 1998]: This would depend on how people decided to invest their capital in PEPs and TESSAs.

§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what are his estimates for the cost of tax relief under(a) the new individual savings account and (b) the continuation of PEPs and TESSAs, for (i) 2000–01, (ii) 2001–02 and (iii) 2002–03; and if he will make a statement. [24569]

§ Mr. SayeedTo ask the Chancellor of the Exchequer what estimates he has made of the cost to the Treasury of the tax exemptions under the proposed system of ISAs(a) in each of the 10 years following introduction and (b) according to (i) sex, (ii) the age groups 21 to 30, 31 to 40, 41 to 50 and 51 to 60 years, (iii) marital status,(iv) employment in the categories (1) working full-time, (2) part-time, (3) housewife and (4) unemployed,(v) number of dependent children aged 0 to 4, 5 to 10 and 11 to 16 years and (vi) socio-economic group; and if he will indicate the assumptions used to calculate the estimates. [27319]

§ Mr. Darling[holding answer 22 January 1998]: The estimated cost to the Exchequer of the ISA proposals is broadly similar to the combined cost of TESSAs and PEPs, but estimates are sensitive to assumptions made, e.g. how people decide to invest their capital.

§ Mr. GibbTo ask the Chancellor of the Exchequer (1) what assessment his Department has made of the advantages of making the annual limits for ISAs divisible by 12; [28727]

(2) what are the monthly limits for individual savings accounts for those contributing monthly by standing order. [28726]

§ Mr. Darling[holding answer 10 February 1998]: No monthly limits are proposed.

§ Mr. LilleyTo ask the Chancellor of the Exchequer if he will ensure that copies of all the responses to the individual savings account consultation process are placed in the Library. [29185]

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§ Mr. Darling[holding answer 12 February 1998]: I refer the right hon. Member to the answer I gave to the hon. Member for East Worthing and Shoreham (Mr. Loughton) on 5 February 1998, Official Report, columns 775.

§ Mr. FallonTo ask the Chancellor of the Exchequer if he will estimate the revenue cost of introducing individual savings accounts with no limit on the total amount that may be invested in such accounts. [26350]

§ Mr. DarlingIt is not possible to estimate the cost because this would depend on the way in which people decide to invest their capital.

§ Mr. FallonTo ask the Chancellor of the Exchequer if he will estimate the amount needed to invest in a tax-free savings account, at current rates of interest, in order to generate a yearly interest income equivalent to(a) the state pension for a single person, (b) the average income for a single pensioner, (c) the average income for a pensioner couple, (d)£10,000 per annum, (e)£15,000 per annum and (f)£20,000 per annum. [26233]

§ Mr. DarlingThe Government are committed to spreading the savings culture; that is why we are introducing individual savings accounts. However, the Government believe that pensions are, on the whole, the better vehicle for providing a secure income in retirement.

We are reviewing the current pension arrangements in the Pensions Review and plan to introduce Stakeholder Pensions in the near future.

ISAs are designed to complement pensions; they are not a substitute for them.

§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer how many representations he has received critical of the proposed £50,000 limit on ISAs. [27724]

§ Miss McIntoshTo ask the Chancellor of the Exchequer if he will make a statement on the £50,000 limit on transfer of funds from PEPs and TESSAs to the new ISAs. [27640]

§ Mr. LetwinTo ask the Chancellor of the Exchequer how many(a) individuals and (b) bodies have written to his Department about his proposals to limit tax relief on TESSAs and PEPs in connection with the establishment of ISAs. [32035]

§ Mr. Darling[holding answer 2 March 1998]: We have received a large number of representations, making helpful comments on our proposals for individual savings accounts, which comment on a number of different areas including the £50,000 limit. The consultation period has now finished and, as I made clear in the House on 3 March 1998, Official Report, columns 868–75, we are considering the responses received.

§ Mr. GibbTo ask the Chancellor of the Exchequer what would be the estimated cost of tax relief on PEPs on the assumption that tax credits are not paid and single company PEPs are abolished. [28728]

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§ Mr. Darling[holding answer 10 February 1998]: This would depend on how much investors decided to invest their capital in PEPs.

§ Mr. LilleyTo ask the Chancellor of the Exchequer if he will publish the assumptions underlying estimates that tax relief on PEPs and TESSAs was £800 million and £450 million in 1997–98 and would be £1,150 million and £550 million in 2000–01 if the current tax reliefs remained. [32060]

§ Mr. DarlingThe Exchequer cost of tax relief for PEPs for 1997–98 of £800 million includes a cost of £300 million for capital gains tax, and £500 million for income tax, of which basic rate repayments are £400 million (including some £300 million relating to the payment of tax credits on dividends on shares of UK companies) and £100 million is higher rate relief. The estimated cost for 2000–01 of £1,150 million assumes that the scheme would continue with the current tax reliefs. The capital gains tax cost is estimated to be £375 million, and the income tax cost £775 million, of which basic rate repayments are £575 million (including some £450 million relating to the payment of tax credits on dividends on shares of UK companies) and £200 million is higher rate relief.

The cost of tax relief for TESSAs for 1997–98 of £450 million includes basic rate relief of around £400 million and higher rate relief of £50 million. The estimated cost for 2000–01 of £550 million includes basic rate relief of around £500 million and higher rate relief of £50 million.

§ Mr. LilleyTo ask the Chancellor of the Exchequer by how much he estimates tax relief would be reduced as a result of applying annual and overall limits of £5,000 and £50,000 to PEPs and TESSAs if those schemes kept their current tax reliefs. [32061]

§ Mr. DarlingThis would depend on how individuals invested their capital.

§ Mr. SayeedTo ask the Chancellor of the Exchequer how many people made use of the system of carry back, carry forward provisions for contributions to personal pension plans in each of the last three years for which figures are available, broken down by(a) sex, (b) the age groups 21 to 30, 31 to 40, 41 to 50 and 51 to 60 years, (c) marital status, (d) employment in the categories (i) working full-time, (ii) part-time, (iii) housewife and (iv) unemployed, (e) number of dependent children aged 0 to 4, 5 to 10 and 11 to 16 years and (f) socio-economic group; and what estimates he has made of future changes in these figures, with particular reference to the introduction of ISAs. [27315]

§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer how many new(a) TESSA and (b) PEP schemes have been opened since 2 December 1997. [27725]

§ Mr. CousinsTo ask the Chancellor of the Exchequer if he will estimate the number and present value of holdings in PEPs(a) in total and (b) in bands of values of £10,000. [23662]

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§ Mr. FallonTo ask the Chancellor of the Exchequer if he will estimate how many people hold overall TESSA and PEPs investments worth more than(a) £50,000, (b) £60,000, (c)£100,000 and (d)£200,000. [26230]

§ Mr. LilleyTo ask the Chancellor of the Exchequer how many people invested(a) up to £1,000, (b)£1,001 to £2,000, (c) £2,001 to £3,000, (d)£3,001 to £4,000, (e)£4,001 to £5,000 and (f)£5,001 to £6,000 in (i) PEPs and (ii) TESSAs in the most recent year for which figures are available. [32067]

§ Mr. Darling[holding answer 2 March 1998]: The information is not available in the form requested because the last Government failed to require providers to submit enough information on their returns to the Inland Revenue.

§ Mr. CousinsTo ask the Chancellor of the Exchequer what assumptions about equity asset growth and future increases in ISA contribution or asset-value ceilings underlie his answer to the hon. Member for Bognor Regis and Littlehampton (Mr. Gibb) of 22 December 1997,Official Report, column 472; and which major provider of PEP mortgages is the source of his estimates. [23034]

§ Mr. Geoffrey RobinsonThe question refers to a calculation made by the Halifax. It is based on a gross return on equities of 6 per cent. above retail price inflation, adjusted to allow for charges and taxes.