§ Annabelle EwingTo ask the Chancellor of the Exchequer what rules in respect of double taxation are applicable to the Scottish Bus Group employee pension fund. [48284]
§ Mr. Andrew SmithA 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. The current rate at which the tax is charged is 35 per cent. in accordance with Section 74 of the Finance Act 2001. The tax payable on payments to pensioners will depend on the personal tax circumstances of the individual. Payments have yet to be finalised.
§ Annabelle EwingTo ask the Chancellor of the Exchequer what legal advice his Department has obtained in relation to the distribution of the Scottish Bus Group employee pension funds; under what statutory provisions these funds are liable to public general taxation; to what extent ex-gratia payments made to former members of the fund are liable to tax; to what extent this applies in respect of payments in excess of £30,000; and at what rate. [48282]
§ Mr. Andrew SmithThe Scottish Executive is taking forward the wind up of the STG pension schemes. The tax position is set out in the answer I am today giving to another question of the hon. Lady's ref. 48284.