HC Deb 27 February 1991 vol 186 c506W
Mr. Nicholas Brown

To ask the Chancellor of the Exchequer what information he has as to the number of TESSAs likely to represent additional savings; and how many are transferred from other forms of savings.

Mr. Maude

[holding answer 25 February 1991]: TESSAs are proving to be very successful and are undoubtedly helping to encourage a climate of thrift. Any estimate of their effect on the overall level of personal savings would be speculative.

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer how much tax will be foregone for each 100,000 TESSAs taken out in each of the first five years, assuming that the maximum is invested in each TESSA.

Mr. Maude

[holding answer 25 February 1991]: The cost of tax relief would depend on the rates of interest paid, the marginal tax rate of investors, and whether they invest the money as a lump sum or in regular monthly payments.