asked the Minister for Finance in respect of the tax years 1984-85, 1985-86, 1986-87 and 1987-88 the estimated cost to the Exchequer of (a) profit-sharing schemes; (b) employees' contributions to approved superannuation schemes; (c) the exemption of Irish Government securities where the owner is not ordinarily resident in Ireland; (d) exemption of income of approved superannuation funds; (e) retirement annuity premiums by self-employed; (f) the exemption of lump sum retirement benefits paid under superannuation schemes; (g) exemption of payments made as compensation for loss of office and (h) relief under chapter V of Finance Act, 1986 to promote renewal and redevelopment in certain areas.
Written Answers. - Income Tax Revenue Foregone.
71.
The following table sets out the information requested in so far as it is available:
Estimated cost to the Exchequer.
|
Allowance or Relief |
1984-85 |
1985-86 |
1986-87(provisional) |
1987-88(provisional) |
|
£ million |
£ million |
£ million |
£ million |
|
|
Profit sharing schemes |
1.25 |
3.5 |
2.6 |
not available |
|
Employees' contributions to approved superannuation schemes* |
40.0 (1984) |
41.8 (1985) |
44.4 (1986) |
47.7 (1987) |
|
Exemption of Irish Government securities where owner not ordinarily resident in Ireland*(1) |
18.0 (1984) |
26.0 (1985) |
34.0 (1986) |
not available |
|
Exemption of income of approved superannuation funds* |
45.0 (1984) |
53.0 (1985) |
62.0 (1986) |
not available |
|
Retirement annuity premiums by self-employed* |
16.2 |
16.3 |
not available |
not available |
|
Exemption of lump sum retirement benefits paid under superannuation schemes* |
40.0 |
45.0 |
39.5 |
49.2 |
|
Exemption of payments made as compensation for loss of office* |
4.2 |
5.2 |
6.25 |
5.0 |
|
Urban renewal (2) |
— |
— |
nil |
negligible |
*These estimates are very tentative and are subject to a wide margin of error.
Notes on Table
(1) The estimates relate to the cost of exemption from income tax of the interest earned on the securities in question.
(2) Relief from income tax and corporation tax was introduced under Chapter V of the Finance Act, 1986, to promote urban renewal and redevelopment in certain areas.
72.
asked the Minister for Finance the estimated cost to the Exchequer in 1989 and 1990 in terms of income tax revenue foregone of the indexation of (a) the employee PAYE allowance and (b) the income tax rate bands.
The costs to the Exchequer, estimated by reference to the income tax year 1989-90 of the changes referred to in the question are estimated as follows:
|
1989 |
Full Year (1989-90) |
|
|
Indexation of: |
£m |
£m |
|
(a) Employee (PAYE) allowance |
3.3 |
5.5 |
|
(b) Income tax rate bands |
6.5 |
10.8 |
The estimates are based on an assumed increase in inflation of 2 per cent in 1989-90 compared with the corresponding level in 1988-89.