§ Mr. Michael Forsythasked the Chancellor of the Exchequer when he intends to publish detailed proposals for the tax treatment of personal pensions; and whether he will make a statement.
§ Mr. Norman LamontThe Inland Revenue has, with my authority, today published a consultative document setting out the proposed tax rules for the new pensions arrangements. A copy has been placed in the Library.
I believe that these proposals, which follow on from the changes already introduced by my right hon. Friend the Secretary of State for Social Services, offer a new pensions deal for the 10 million employees in this country who do not belong to an occupational pension scheme, and there will be a wider pensions choice for all employees.
Changes in the tax rules will make it easier and cheaper for any employer to set up a simplified pension scheme with the benefit of tax relief. And the same tax reliefs will be given to the new personal pension schemes which will be open to all employees.
We also envisage improvements in the rules for retirement annuities which will be particularly welcome by self-employed people nearing retirement. Finally, we propose much greater transferability between different pension arrangements. In the past barriers to mobility, including the existing provisions for pensions, have been a drag on the country's economic performance. Improving job mobility is an important Government objective. The new proposals will give much greater opportunity for people to have a pension arrangement which they can take with them when they change jobs.