HC Deb 04 March 2002 vol 381 cc110-1W
Mr. Mark Field

To ask the Chancellor of the Exchequer if he will make a statement on the effects of the abolition of the advance corporation tax credit on future pensions. [40194]

Chris Grayling

To ask the Chancellor of the Exchequer what estimate he has made of the additional contributions that(a) a 30- year-old man, (b) a 40-year-old man and (c) a 50-year-old man would have to make to a money-purchase pension scheme as a result of changes to the tax treatment of pension funds introduced since 1997. [39432]

Mr. Andrew Turner

To ask the Chancellor of the Exchequer (1) what estimate he has made of the number of months' pension contributions would now be required to achieve an equivalent funded pension to a year's pension contributions in 1997; [40281]

(2) to what extent the value of pension funds has changed as a result of his amendments to advance corporation tax. [40279]

Ruth Kelly

The Government's package of corporation tax reforms included measures to boost corporate investment by removing tax distortions. The withdrawal of payable tax credits on dividends was just one part of these measures. Pension funds will share in the long-term benefits from these changes to corporation tax. The overall effects of these changes on pension funds and future pensions will depend on a variety of factors, including: the type of scheme paying the pension; the take-up of private pensions; the level of future pension contributions; pension schemes' asset allocation and investment policies; and investment returns generally.