§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the cost in 1994–95 of tax relief given at a rate of(a) 40 per cent. and (b) 25 per cent. on the first £30,000 of payments made on termination of employment. [39142]
§ Mr. Jack[holding answer 24 October 1995]: The total cost of tax relief on the first £30,000 of payments made on termination of employment is estimated to be about £1,600 million in 1994–95. A breakdown of this figure at each marginal tax rate is given in the following table:
Cost of tar relief £ million Lower rate of 20 per cent. 50 Basic rate of 25 per cent. 800 Higher rate of 40 per cent. 750 Total 1,600