§ Ms StuartTo ask the Chancellor of the Exchequer what assessment he has made of the extent to which funded unapproved retirement benefit schemes are used(a) to avoid the payment of national insurance contributions and (b) to obtain a reduction in a company's council tax charges. [46952]
§ Dawn PrimaroloSince April this year the Contributions Agency has been enforcing liability for National Insurance contributions on all employers' payments into funded unapproved retirement benefit schemes in a way that matches the Inland Revenue's income tax regime. This alignment of the tax and National Insurance rules is a further example of the Government's determination to make the two systems fairer and easier to administer. Changes to the National Insurance regulations 179W giving additional clarification are expected to be made shortly. Funded unapproved retirement benefit schemes cannot be used as a means of avoiding council tax charges.