§ Mr. BayleyTo ask the Chancellor of the Exchequer if he will estimate the revenue yield from restricting relief on profit-related pay to relief at the marginal rate of(a) 25 per cent. and (b) 20 per cent. giving in each case the number of people affected and the average loss per taxpayer. [40783]
539W
§ Mr. Jack[holding answer 31 October 1995]: Information about profit-related pay schemes is derived from annual returns provided by employers. These show the total amounts of profit-related pay and the numbers of participants but do not include information about the distribution of earnings. The total revenue cost of the scheme is tentatively estimated on the assumption that the distribution of participants by marginal tax rate is similar to that for employees generally. On this basis, the revenue yield from restriction to 25 per cent. and 20 per cent. might be about £90 million and £230 million respectively at 1995–96 levels. But it would be misleading to provide estimates about numbers of losers and average amounts of loss on the basis of very general assumptions.