§ Mr. DewarTo ask the Chancellor of the Exchequer what would be the cost in 1993–94 of removing tax relief at the higher rate from(a) personal pensions, (b) all forms of occupational pensions and (c) all pensions to which higher rate tax exemption applies.
§ Mr. Dorrell[holding answer 4 December 1992]: The latest estimates of the direct revenue yields for 1993–94, assuming statutory indexation of 3.25 per cent. on 1992–93 levels of allowances and thresholds, are as follows:
£ million Withdrawal of higher rate relief:— on contributions to personal pensions1 180 on contributions to occupational pensions 300 on all pensions 480 1 Including relief for retirement annuity premia and free standing additionnal voluntary contributions. No account has been taken of possible behavioural changes resulting from restricting availability of relief at the higher rate in these ways.