§ Mr. GardinerTo ask the Chancellor of the Exchequer (1) how many investors have taken out income drawdown policies in each year since their inception in 1995; [93877]
(2) how many people in each of the last five years who previously had an income drawdown scheme bought an annuity before they were 75-years-old. [93876]
§ Ruth KellyAvailable estimates of the number of new income drawdown plans purchased are contained in the following table.
New Income Drawdown Plans1 Year Number of new policies (thousand) 1996 10 1997 14 1998 19 1999 18 2000 14 2001 15 Source:
Association of British Insurers (ABI). Note that figures are only available from 1996.
£ billion Taxable income exceeding Income tax rates (percentage) 42 44 45 48 50 52 54 55 60k 1.8 3.2 3.9 5.9 7.2 8.6 9.9 10.6 70k 1.6 2.8 3.4 5.2 6.4 7.6 8.8 9.4 80k 1.5 2.6 3.1 4.7 5.8 6.9 8 8.5 90k 1.4 2.4 2.8 4.3 5.3 6.3 7.3 7.8 100k 1.3 2.2 2.6 4 4.9 5.8 6.7 7.2 120k 1.1 1.9 2.3 3.5 4.3 5.1 5.9 6.3 140k 1 1.7 2.1 3.1 3.9 4.6 5.3 5.6 150k 1 1.6 2 3 3.7 4.4 5 5.4 175k 0.9 1.5 1.8 2.7 3.3 3.9 4.5 4.8 200k 0.8 1.3 1.6 2.4 3 3.5 4.1 4.4 220k 0.7 1.3 1.5 2.3 2.8 3.3 3.8 4.1 250k 0.7 1.1 1.4 2.1 2.5 3 3.5 3.7 The estimates are based on the Survey of Personal Incomes and are consistent with the November 2002 pre-Budget report. These estimates exclude any behavioural response to the tax change.