§ Mr. BercowTo ask the Chancellor of the Exchequer how much of the total cost of tax relief for approved pension schemes in the last financial year was provided to higher rate taxpayers. [14417]
§ Ruth KellyThe estimates available for 2000–01 are as follows
845WCost of relief at 40 per cent. on pension contributions paid by employees and self-employed—£3.5 billion.Cost of relief at 40 per cent. on pensions contributions paid by employers in respect of higher rate employees—£4.6 billion.The employers' component is estimated on the basis that under present arrangements, employers' contributions are not taxable as a benefit in kind of the employees. The estimates assume that the proportion of total employers' contributions related to higher rate taxpayers is the same as that observed for employees' contributions. It is not possible to apportion the other elements of the total cost of tax relief between higher rate taxpayers and others.
Estimates are provisional, based on the Survey of Personal Incomes 1999–2000.