§ Mr. PageTo ask the Chancellor of the Exchequer what proportion of personal equity plan holders are standard rate tax payers.
§ Mr. Norman LamontI regret that the information is not available.
§ Mr. McCrindleTo ask the Chancellor of the Exchequer if he is satisfied with the take up of personal equity plans.
§ Mr. Norman LamontInvestors hold in excess of 350,000 personal equity plans at present. This is a significant number, though I would naturally like to see still more investors take advantage of the PEP scheme.
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§ Mr. Simon CoombsTo ask the Chancellor of the Exchequer if he will take steps to allow investment companies who administer personal equity plans to operate them as collective investment schemes.
§ Mr. Norman LamontPersonal equity plans are designed to encourage small investors to make direct investments in British companies. The rules already allow some holding of unit trusts and investment trusts within a PEP. PEP rules are kept under review.
§ Mr. CranTo ask the Chancellor of the Exchequer what assessment he has made of the cost-effectiveness of the current administration of personal equity plans; and what plans he has to assist investment companies in improving the administration of such plans.
§ Mr. Norman LamontA number of changes to the personal equity plan rules were made at the beginning of the year, largely in order to reduce managers' costs. The scheme is kept under constant review.
§ Mr. Neil HamiltonTo ask the Chancellor of the Exchequer whether, as a means of reducing administration costs, he will take steps to allow the paying of personal equity plan dividends gross.
§ Mr. Norman Lamont[holding answer 25 October 1988]: I have noted my hon. Friend's suggestion. We keep the operation of personal equity plans under constant review.
§ Mr. McCrindleTo ask the Chancellor of the Exchequer if he will estimate the cost to the Exchequer of allowing front-end tax concessions on personal equity plans for basic rate taxpayers; and if he will make a statement.
§ Mr. Norman Lamont[holding answer 26 October 1988]: The cost would depend on the precise form of the tax concessions and the number of investors attracted to the scheme. If the concessions were generous, the costs could be substantial.
§ Mr. McCrindleTo ask the Chancellor of the Exchequer (1) if he will consider ways in which costs of running personal equity plan schemes could be kept to a minimum; and if he will make a statement;
(2) if he will estimate the cost in revenue to the Exchequer of streamlining the administration of personal equity plans; and if he will make a statement.
§ Mr. Norman Lamont[holding answer 26 October 1988]: The PEP scheme is kept under review, including the need to keep down running costs, particularly for plan managers.