HC Deb 01 November 1956 vol 558 cc178-9W
Mr. McKay

asked the Chancellor of the Exchequer what estimate he has made of the loss of revenue due to the contributions of employees to special pension schemes being tax free.

Mr. H. Macmillan

The cost of the relief given to employees in respect of their contributions to approved superannuation schemes is estimated at about £15 million a year.

Mr. McKay

asked the Chancellor of the Exchequer what estimate he has made of the loss of revenue due to the employers' contributions to special pensions schemes for the workers or directors being recognised as a cost of production ; and what extra revenue he estimates would result if these amounts were considered as part of the profits.

Mr. H. Macmillan

Complete statistics of employers' contributions to superannuation schemes are not available but it is estimated that the cost of allowing such contributions to be deducted in arriving at taxable profits is of the order of £80 million a year. The additional revenue which would be received if these contributions were disallowed cannot be estimated as it would depend on the extent to which the contributions would be discontinued and replaced by higher wages and salaries.

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