§ Mr. Frank FieldTo ask the Chancellor of the Exchequer if he will list in the current year what would be the savings in revenue if pension contributions were allowed at the standard rate only. [12962]
§ Mr. Jack[holding answer 1 February 1996]: The estimated full-year yield of restricting relief from pension contributions to the basic rate at 1996–97 income levels would be about £790 million. This is based on a projection of the 1993–94 survey of personal incomes and other survey data in line with assumptions in the Budget forecast. It does not take account of any behavioural effects which might result from the introduction of such changes. The yield represents about 8 per cent. of the total cost of reliefs for pension schemes.