§ Mr. Meacherasked the Chancellor of the Exchequer what has been the level of tax reliefs paid each year since 1970 (i) to employees contributing to private pension schemes, (ii) to employers' running private pension schemes, (iii) to pension funds on their investments and
258W(iv) to employees in lump sum reliefs on retirement; and if he will estimate by how much each of these would be increased in each of the next five years if the state earnings related scheme were abolished.
§ Mr. MooreReadily available estimates of the direct revenue costs of the reliefs relate to 1984-85 and are as follows:
Relief in respect of: Direct re-venue cost in full year (£ million) 1984–85 Employees' contributions to occupational pension schemes allowed as a deduction for income tax purposes 1,250 Employers' contributions to occupational pension schemes allowed as a charge against profits for corporation tax purposes *1,600 Investment income of occupational pension funds (assuming relief at the basic rate) 2,500 Lump sum payments to pensioners (assuming relief at the basic rate) 900 * This estimate is particularly tentative. The effect on tax reliefs of abolition of the state earnings-related pension scheme would depend on the assumptions made about any consequential changes in the numbers of contributions made to pension schemes arid in their level.