§ Mr. MacleanTo ask the Chancellor of the Exchequer (1) how many people paid into personal pension plans and how many schemes attracted tax relief at(a) the starting rate, (b) the standard rate and (c) the higher rate in each of the last three years; [117231]
(2) what was the total annual cost to the Treasury of providing tax relief on personal pension plans at (a) the starting rate, (b) the standard rate and (c) the higher rate in each of the last three years. [117230]
§ Miss Melanie JohnsonEstimates of the cost of tax relief for contributions to personal pensions and such information as is available on the number of contributors by rate of income tax are given in the tables.
Number Employees1 making contributions to personal pensions Approximately 23,000,000 of which, higher rate taxpayers 300,000 1 Based on aggregate information provided by plan managers and survey data. 2 All benefit from repayment of basic rate tax claimed by their pension provider, including those who are non-taxpayers or pay tax at less than the basic rate.
Number of self-employed1 making contributions to personal pensions Thousand Rate of income tax 1996–97 1997–98 1998–99 Non-taxpayers 290 310 280 Lower rate 170 170 160 Basic rate 690 680 660 Higher rate 210 250 260 1 Based on relief claimed on tax returns 138W
Cost of tax relief for personal pension schemes £ million Source of contributions and rate of income tax relief 1996–97 1997–98 1998–99 Employees' contributions Basic rate 480 420 470 Higher Rate 200 390 450 Employers' contributions1 Basic rate 160 180 230 Higher rate 60 170 220
Cost of tax relief for personal pension schemes £ million Source of contributions and rate of income tax relief 1996–97 1997–98 1998–99 National Insurance rebates2 Basic rate 224 217 175 Contributions by the self employed Lower rate 30 30 30 Basic rate 200 210 210 Higher rate 420 500 530 1 On the basis that under present arrangements, employers' contributions are not taxable as a benefit in kind of the employees. Figures assume that the proportion related to higher rate taxpayers is the same as that observed for employees' contributions. 2 Basic rate tax relief in respect of the employees' part of the National Insurance rebate received by around 3.7 million employees with appropriate personal pensions.