§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what was the growth in pension, life assurance and related funds in each year since 1965; and what was the estimated loss to the Exchequer of (a) income tax and (b) capital gains tax by virtue of the reliefs given to such funds under each heading.
§ Mr. MooreEstimates of the net increase in the amount available for investment of life assurance and funded pension schemes are shown below for years up to 1982—the latest year for which a figure is available.
Life Assurance and Pensions Schemes Net increase in amount available for investment £ million 1965 1,163 1966 1,166 1967 1,298 1968 1,430 1969 1,449 1970 1,661 1971 1,981 1972 2,737 1973 3,225 1974 3,406 1975 4,070 1976 5,209 1977 6,458 1978 7,808 1979 9,966 1980 11,568 1981 12,640 1982 12,803 The technical research document "Cost of Tax Reliefs for Pension Schemes: Appropriate Statistical Approach" published by the Board of Inland Revenue in September 1983 sets out five bases on which to estimate the cost of tax reliefs, with figures on each basis for 1983–84. I regret that it would not be possible to provide estimates on these bases for earlier years without disproportionate cost. Nor is it possible to estimate the cost of the pegged rate of tax on the investment income of life assurance funds reserved for policy holders.