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Self-Employed Persons (Retirement Annuity)

Volume 990: debated on Thursday 7 August 1980

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asked the Chancellor of the Exchequer if he will estimate the cost of allowing those born before 1 January 1920 and 1 January 1930, respectively, to invest 20 per cent., 25 per cent. and 30 per cent. of their incomes in a self-employed retirement annuity in lieu of the 17½ per cent. allowed in the Finance Act 1980.

[pursuant to his reply, 4 August 1980, c. 44]: Information on the age of persons making qualifying contributions is incomplete and the estimates also depend on an assumption about the extent to which an increase in the limit would be taken up. This assumption must be highly uncertain if the increase is substantial. With these qualifications, estimates of the cost for a full year at 1980–81 income levels might be of the following orders of magnitude:

Persons BornLimitonretirement reliefannuity
Before 1 January20%25%30%
£ million