§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the estimated loss of (a) income tax, (b) higher rate tax and (c) capital gains tax in the next financial year on, respectively, life assurance premiums, retirement annuity premiums and lump-sum payments to pensioners, distinguishing between non-contributory schemes which provide a maximum pension of 50 per cent. of eligible earnings and other schemes and the investment income of occupational pension schemes, distinguishing between employees and the self-employed.
§ Mr. Norman Lamont[pursuant to his reply, 23 March 1987, c. 40]: The available estimates of the direct revenue cost in respect of income ax are as follows:
312W
Estimated direct revenue cost 1987–88 £ million
Life assurance premium relief 510 Retirement annuity premium relief 410 —(Of which, relief at the excess of rates above the basic rate 130) Relief on lump sum payments to pensioners (assuming relief at the basic rate) 1,100 Relief on investment income of occupational pension funds (assuming relief at the basic rate) 4,000 There are no capital gains tax implications of life assurance premium relief, retirement annuity premium relief or lump sum payments to pensioners, and no estimate of the cost of exempting capital gains made by pension funds is available.
The estimated cost of life assurance premium relief given above includes a cost of about £100 million in respect of the self-employed and that for retirement annuity premium relief includes a cost of about £330 million.
The requested disaggregation by type of scheme is not available.