§ Mr. MaxtonTo ask the Chancellor of the Exchequer what are his estimates for 1993–94 and 1996–97 of the cost of tax relief for investment income of(a) occupational pension schemes and (b) personal pension schemes.
§ Mr. DorrellA provisional cost of income tax relief, assuming relief at the basic rate of tax, for the investment income of occupational pension schemes is estimated to be about £5.1 billion in 1993–94. The cost for 1996–97 will depend on future levels of investment, rates of return and tax rates. It is not possible to provide reliable estimates of the cost of exemption for investment income related to retirement annuity contracts and personal pensions.