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Occupational Pension Trusts

Volume 77: debated on Thursday 18 April 1985

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asked the Chancellor of the Exchequer (1) what estimate he has made of the yield of tax that would be obtained if the funds held by occupational trusts as reserves and not allocated as the entitlement of individual beneficiaries were taxed at the same rate as the income drawn by companies from assets in the ownership of the company;(2) what is his estimate of the total value of the funds invested in the occupational pension trusts approved for tax purposes for beneficiaries in private sector employment; and what is the proportion which can be identified as having been allocated to particular beneficiaries.

[pursuant to his replies, 18 March 1985, c. 396]: I regret the delay in replying. Total net assets of superannuation funds established by private sector employers were about £62.5 billion at the end of 1983. As stated in my written reply of 19 March 1985 at column 463, this excludes assets of long-term insurance funds relating to occupational pensions. The amounts allocated to particular beneficiaries are not known. In referring to sums not so allocated, my hon. Friend may have in mind any funds temporarily held in a pension fund over and above the sum currently estimated to be needed, on an actuarial valuation, to honour the scheme's obligations to its members. I regret that there is not sufficient information to enable such funds to be identified or to make an estimate of the likely yield from taxing them.