HL Deb 19 March 2002 vol 632 cc131-2WA
Lord Oakeshott of Seagrove Bay

asked Her Majesty's Government:

How much income pension funds in the United Kingdom have lost through the abolition of dividend tax credits on their holdings of ordinary and preference shares in each of the financial years 1997–98,1998–99,1999–2000 and 2000–01; and [HL3174]

What has been the outturn of the estimated year-by-year revenue effects of the July 1997 Budget tax measures to abolish payable tax credits for pension schemes and United Kingdom companies from Budget day and changes for everyone else from 6 April 1999, as set out in Table 2:2 on page 40 of HC 85 (1997–98). [HL3189]

Lord McIntosh of Haringey

The Government's package of corporation tax reforms included measures to boost corporate investment by removing tax distortions. The withdrawal of payable tax credits on dividends was just one part of these measures. Pension funds and others will share in the long-term benefits from these changes to corporation tax. The overall effects of these changes on pension funds will depend on a variety of factors, including the type of scheme paying the pension; the take-up of private pensions; the level of future pension contributions; pension schemes' asset allocation and investment policies; and investment returns generally.