§ Ms HarmanTo ask the Chancellor of the Exchequer if the five per cent. national insurance contribution rebate which individuals will receive under the Government's basic pension plus proposal will be disregarded for income tax purposes. [20436]
§ Mr. Jack[holding answer 17 March 1997]: The effect of the change for the 5 per cent. NIC rebate would be that the tax relief which is currently given where NIC rebates go into a personal pension would cease, matching the withdrawal of relief on contributions which an individual makes to a pension scheme; but the pensions in payment would be tax-free.