§ Mr. LawsTo ask the Chancellor of the Exchequer what his estimate is of the cost of restricting income tax relief on pensions to the basic rate of income tax; and if he will make a statement. [130565]
§ Dawn PrimaroloThe estimated yield from restricting income tax relief on employee and self-employed pension contributions to the basic rate is £1.9 billion in 2002–03. The yield from restricting employer contributions is £2.8 billion, this estimate assumes that the proportion of total employer contributions relating to higher rate taxpayers is that same as that for employees. The estimates take no account of any behavioural effects which are likely to result from such changes.