§ Mr. CousinsTo ask the Chancellor of the Exchequer if he will estimate (i) the revenue forgone in the operation of(a) PEPs and (b) TESSAs in each full year of their 574W existence, (ii) the take up of TESSAs and PEPs in (1) each decile of income and (2) each region and nation of the United Kingdom and (iii) the revenue forgone in respect of CGT separately. [23659]
§ Mr. Geoffrey RobinsonAvailable information is in the tables. The regional distribution of take-up is based on current estimates that about 4 1/2, million people have a TESSA, and over 3 million people have one or more PEP, representing 10 per cent. and 8 per cent. of the UK adult population respectively.
Estimated cost of tax relief for PEPs and TESSAs £million Year Income tax PEPs CGT Total TESSAs 1986–87 neg neg neg — 1987–88 5 neg 5 — 1988–89 15 neg 15 — 1989–90 20 neg 20 — 1990–91 45 20 65 25 1991–92 90 30 120 200 1992–93 120 50 170 250 1993–94 140 90 230 300 1994–95 200 125 325 350 1995–96 300 150 450 450 1996–971 400 200 600 350 1997–981 500 300 800 450 1 Provisional. neg=negligible.
Per cent. Region Estimated regional take-up1 of TESSAs PEPs United Kingdom 10 8 England 11 8 North 10 7 North West 9 7 Yorkshire and Humberside 11 7 East Midlands 10 6 West Midlands 10 7 East Anglia 12 9 South East 11 9 South West 10 10 Wales 10 7 Scotland 8 7 Northern Ireland 10 5 1Based on the population aged 18 and over.
§ Mr. CousinsTo ask the Chancellor of the Exchequer if he will estimate the number of void(a) PEPs and (b) TESSAs identified in each year of the last three years and the average number of years of tax liability recovered in respect of each void PEP or TESSA. [23658]
§ Mr. Geoffrey RobinsonNumbers of PEPs and TESSAs made void because the holder had subscribed to more than one PEP or TESSA in a tax year are as follows:
575W
PEPs TESSAs 1994–95 1,118 1,406 1995–96 1,028 473 1996–97 1,954 905 Figures for PEPs and TESSAs made void for other breaches of the PEP and TESSA Regulations, and for the average number of years of tax liability recovered, are not available.
§ Mr. CousinsTo ask the Chancellor of the Exchequer if he will estimate the distribution of (i) TESSA and (ii) PEP holders and the tax revenue forgone to those holders amongst the regions and nations of the United Kingdom. [23660]
§ Mr. Geoffrey RobinsonRegional distributions of PEP and TESSA holders based on Inland Revenue records for 1995–96 are given in the table. The value of funds held in TESSAs follows the same pattern as the distribution of holders, and the regional distribution of the cost of tax relief is expected to be broadly similar. The regional distribution of the value of funds held in PEPs is not available from Inland Revenue records.
Per cent. Region Regional distribution of holders of TESSAs PEPs United Kingdom 100 100 England 86 86 North 5 4 North West 10 10 Yorkshire and Humberside 9 7 East Midlands 7 6 West Midlands 9 8 East Anglia 4 4 South East 34 36 South West 8 11 Wales 5 4 Scotland 7 8 Northern Ireland 2 2