§ Mr. BattleTo ask the Chancellor of the Exchequer what is the total revenue foregone to the Exchequer over a financial year of(a) individual contributions to pension funds being tax free for (i) standard rate payers and (ii) higher rate payers, (b) the income and capital gains of pension funds being tax exempt and (c) the facility open to an individual of taking up to a quarter of their accrued pension rights as a lump sum payment free from tax.
§ Mr. MaudeThe latest available estimates for 1990–91 are as follows.
Relief for £ million Employee contributions to occupational pension schemes1 2 2,200 Investment income of occupational pension schemes1 3 4,900 Lump sum payments to pensioners1 1,000 Contributions to personal pensions (including retirement annuity premia and FSAVCs) 4 5 1,100 1 The total cost of tax reliefs for occupational pension schemes cannot be calculated by adding together the cost of individual reliefs as this would imply a considerable degree of multiple taxation. 2 It is not possible to provide a reliable breakdown of the total cost of relief between basic rate and higher rate taxpayers. 3 Assuming relief at the basic rate of income tax. 4 Including income tax relief on employers' contributions to personal pensions on the basis that under present arrangements employers' contributions are not taxable as a benefit in kind of the employee. 5 It is not possible to provide reliable estimates of the cost of exemption for investment income and lump sum payments related to retirement annuity contracts and personal pensions.