HC Deb 05 November 1993 vol 231 cc548-9W
Mr. Dewar

To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Hartlepool (Mr. Mandelson) of 8 June, 1993Official Report, column 202, on the cost of direct income tax reliefs to include estimates for 1994–95.

Mr. Dorrell

Available information on the major income tax reliefs based on projections of the survey of personal incomes and other surveys is given in the table. The projections for 1994–95 are based on statutory indexation and measures announced in the March Budget and on the conventional assumption of no further changes in the mortgage interest rate.

Higher rate taxpayers Basic or lower rate taxpayers
Cost of relief Number of taxpayers with relief Average income of taxpayers Cost of relief Number of taxpayers with relief Average income of taxpayers with relief
£million million £ £million million £
1991–92
Mortgage interest relief 720 1.0 55,000 4,970 7.7 16,000
Employees contributions to occupational pension schemes 690 0.7 48,000 1,630 7.7 15,000
Contributions to personal pension schemes1 480 0.3 58,000 620 3.1 13,000
Other reliefs 420 0.5 60,000 270 2.6 14,000
1992–93
Mortgage interest relief 690 1.1 53,000 4,140 7.8 16,000
Employees contributions to occupational pension schemes 750 0.8 48,000 1,600 7.4 16,000
Contributions to personal pension schemes1 490 0.4 58,000 590 3.0 13,000
Other reliefs 450 0.6 61,000 280 2.6 15,000
1993–94
Mortgage interest relief 690 1.2 52,000 3,280 7.9 16,000
Employees contributions to occupational pension schemes 820 0.9 48,000 1,600 7.2 16,000
Contributions to personal pension schemes1 500 0.4 58,000 570 2.9 13,000
Other reliefs 480 0.6 61,000 270 2.4 15,000
1994–95
Mortgage interest relief 680 1.7 49,000 2,620 7.6 17,000
Employees contributions to occupational pension schemes 950 1.1 46,000 1,590 7.0 16,000
Contributions to personal pension schemes1 540 0.4 57,000 580 2.9 13,000
Other reliefs 510 0.6 60,000 270 2.4 15,000
1 Includes retirement annuity premia and free-standing additional voluntary contributions