HC Deb 26 October 2001 vol 373 cc442-3W
Annabelle Ewing

To ask the Chancellor of the Exchequer if he will make it his policy to use money paid to the Exchequer from the Scottish Transport Group pension fund to make payments to Scottish Transport Group pensioners; and if he will make a statement. [4574]

Mr. Andrew Smith

[holding answer 18 July 2001]: While there is no legal entitlement for Scottish Transport Group pension scheme members to share in the pension surplus at wind up, Scottish Executive Ministers, following agreement with Treasury Ministers, will make ex gratia payments to eligible pension scheme members when the scheme is would up of around £100 million.

Annabelle Ewing

To ask the Chancellor of the Exchequer in what way the circumstances of the National Bus Group pension fund differ from those of the Scottish Transport Group pension fund as far as taxation of the surpluses thereof is concerned. [9214]

Mr. Andrew Smith

[holding answer 23 October 2001]: A surplus from a pension fund scheme can carry a tax liability. A tax charge is provided for under section 601 of the Income and Corporation Taxes Act 1988. It applies to all payments to an employer from the funds of an exempt approved pension scheme, as the Scottish Transport Group schemes are and the National Bus Company schemes were.

The tax payable on payments to pensioners will depend on the nature of the payment and the personal tax circumstances of the individual. Payments to Scottish Transport Group pensioners have not yet been finalised by the Scottish Executive.