Skip to main content

Tax Allowances

Volume 507: debated on Tuesday 9 March 2010

To ask the Chancellor of the Exchequer pursuant to the answer to the hon. Member for Ruslip Northwood of 5 February 2010, Official Report, column 622W, on Revenue and Customs, what the cost to the Exchequer has been of tax relief from the employee share scheme; whether that amount is included in the £9.6 million referred to in the answer; how many transactions have been processed under the scheme in each year; how many individual taxpayers have participated in the scheme; what consultants were used to formulate the project; and at what cost. (320909)

The estimated cost to the Exchequer of tax and national insurance contributions (NICs) relief of tax-advantaged employee share schemes and the number of individual taxpayer participants in each of the schemes are published at:

http://www.hmrc.gov.uk/stats/emp_share_schemes/menu.htm

The amount of £9.6 million referred to in the answer to hon. Member for Ruislip Northwood (Mr. Hurd) of 5 February 2010, Official Report, column 622W, is not included in the estimates of the cost of tax and NICs relief, because it is a separate cost of introducing and providing the employee share schemes (ESS) online service and database. The ESS service was delivered by Capgemini under HMRC's outsourced IT contract. The numbers of transactions processed using the ESS service database per year are approximately 40,000 in 2007-08, 28,000 in 2008-09 and 23,000 to date in 2009-10.