§ Mr. Gouldasked the Chancellor of the Exchequer what is the practice of the Inland Revenue towards the assessment of tax (a) of payments made from the British Airways pension fund to British Airways in respect of sums to be paid by British Airways to those existing members of the scheme who elect to receive a cash payment in respect of termination of their membership of the scheme and (b) these payments, when made by British Airways to those members; and if he will make a statement.
§ Mr. MooreThe tax affairs of British Airways and of its employees are confidential, as are those of any other taxpayer. But, in general, refunds from a pension scheme to an employer are liable to tax under paragraph 4, schedule 5, Finance Act 1970, and compensation payments by employers to their employees are liable to tax under section 187 of the Taxes Act 1970.
§ Mr. Gouldasked the Chancellor of the Exchequer what consultations with the Inland Revenue have taken place 612W concerning the position of British Airways employees who are being offered cash payments for opting out of the existing pension scheme.