asked the Minister for Finance the total cost to the Exchequer of tax relief on occupational pensions schemes in respect of relief on (a) employees' contributions, (b) employers' contributions, (c) investment income and (d) retirement lump sums.
Written Answers. - Pension Schemes Tax Relief.
342.
(a) The estimated cost of relief in respect of employees' contributions to approved superannuation schemes is as follows:
|
£m. |
|
|
1979-80 |
10 |
|
1980-81 |
14 |
|
1981-82 |
17.5 |
|
1982-83 |
21.7 |
|
1983-84 |
not available |
(b) Employers' contributions to approved occupational pension schemes are allowable deductions for tax purposes as a trading expense. Statistics relating to the different classes of trading expenses are not kept so that it is not possible to indicate the cost of such deductions.
(c) It is assumed that the Deputy is referring to the investment income of pension funds. The standard rate of 35 per cent has been adopted for the purpose of costing the relief on this income. On this basis, the following are the figures sought by the Deputy:
|
£m. |
|
|
1979-80 |
25 |
|
1980-81 |
30 |
|
1981-82 |
35 |
|
1982-83 |
40 |
|
1983-84 |
not available |
(d) Sufficient information is not available on which to base an estimate of the cost of relief on retirement lump sums.