§ Mr. DobsonTo ask the Chancellor of the Exchequer, pursuant to his reply of 13 July,Official Report, column 199, to the hon. Member for Strathkelvin and Bearsden (Mr. Galbraith), how many people benefit from the income tax relief scheme for private medical insurance; which figures were used to estimate the cost of giving relief on all premiums to arrive at the sum of £240 million; and in which year those figures were compiled.
§ Mr. Norman Lamont[holding answer 28 July 1988]: It is estimated that in 1988–89 between 100,000 and 150,000 employees will not be taxed on the benefit of private medical insurance provided by their employers because their employment income and benefits come to less than £8,500 per year, the level at which the special rules for taxing benefits-in-kind begin to apply. Estimates of the cost of granting tax relief on all private medical insurance are derived from analyses of various surveys including the 1985–86 survey of expenses and benefits, the family expenditure survey, the general household survey and aggregate figures on private medical insurance premiums. The estimate given on 13 July related to 1988–89.