§ 34. Mr. Kirkwoodasked the Chancellor of the Exchequer what revenue would accrue from the abolition of tax relief on pension contributions.
§ Mr. MooreI assume the hon. Member has in mind tax relief on pension contributions made by employees. The estimated cost of such relief is about £1,250 million at 1984–85 levels of income and pension contributions. However, the revenue which would accrue from abolition of the relief would depend on any changes which resulted in the levels and methods of provision for retirement and on whether—to avoid double taxation — any changes were made to the tax treatment of pensions in payment.