Skip to main content

Occupational Pensions

Volume 887: debated on Friday 7 March 1975

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer what is the most recent estimate of (a) the total amount of tax relief granted on employees' and employers' contributions to occupational pension schemes, (b) the amount of capital gains tax that would have been payable on occupational pension funds if occupational pension funds were subject to capital gains tax, and (c) the amount of tax that would have been payable on the income from the investments of occupational pension funds if this income were taxable.

The latest information on which to base the required estimates is the Government Actuary's Survey of Occupational Pension Schemes for 1971. For that year the figures of tax retrieved or of additional tax payable are as follows:

£ million
(a) On employees' contributions155
On employers' contributions (1)290
(b) On capital gainsnot available
(c) On investment income290
1. In computing business profits employers' contributions are deductible as a business expense. The estimate shown is the additional tax which might have been payable had they not been deductible.