§ Mr. Chris Smithasked the Chancellor of the Exchequer what estimates he has made of the breakdown of the total full year cost of tax relief for the personal equity plan scheme between (a) capital gains tax relief and (b) income tax relief.
§ Mr. Norman LamontThe cost of the tax reliefs for personal equity plans will depend on the number of plans, the amounts invested and the performance of those investments. The cost in 1987–88, which is wholly income tax relief, is expected to be about £25 million. Costs will build up in future years, and after January 1989 investments made in 1987 may be realised free of capital gains tax.