§ Mr. Denzil DaviesTo ask the Chancellor of the Exchequer if he will estimate the total revenue yield in a full year of the imposition of a tax at the rate of 20 per cent. on the investment income, other than dividends received from United Kingdom resident companies, of pension funds and life assurance companies. [8751]
§ Dawn PrimaroloUsing calculations based on my right hon. Friend's assumption an estimate of the full year yield for 1997–98 from a tax at 20 per cent. on the investment income, other than dividends paid by UK companies, of the funds of occupational pension schemes and the pension funds invested by life insurance companies is about £4½ billion. This estimate does not take account of any behavioural effects which might result from such a change. The investment income arising from the UK non-pensions business of life insurance companies is already subject to tax.