§ Mr. BoswellTo ask the Chancellor of the Exchequer what the most recent annual cost was in tax forgone of superannuation and other pension tax reliefs; and what proportion of this was to the benefit of higher-rate taxpayers. [74644]
§ Dawn PrimaroloEstimates of the cost of tax relief on pension contributions are contained in table 7.9 of Inland Revenue Statistics. The latest version is on the Inland Revenue website: http://www.inlandrevenue.gov.uk/stats/pensions/p_t09_1.htm
Of the estimated £6.4bn relief on contributions by employees and the self employed in 2001–02 around £3.7bn is in respect of higher rate taxpayers and on employer contributions of the total of £9.5bn around £5.4bn is in respect of higher rate employees.
The employers' component is estimated on the basis that under present arrangements, employer contributions are not taxable as a benefit in kind of the employees. The estimates assume that the proportion of total employers' contributions relating to higher rate taxpayers is the same as that observed for employee contributions. It is not possible to apportion the other elements of the total cost of tax relief between higher rate taxpayers and others.
Estimates are provisional and based on the Survey of Personal Incomes 1999–2000.