Written question asked by Baroness Harman (Labour), in the House of Commons. It was due for an answer on Wednesday, 19 March 1997. It was answered by Michael Jack (Conservative) on Wednesday, 19 March 1997 on behalf of the Treasury.

Treasury

Question: What estimate he has made of the change in the amount of tax which people on (1) (a) a quarter, (b) a half and (c) three quarters of average earnings and (2) average earnings can expect to pay (i) over their working life and (ii) over their lifetime under the proposed tax regime of the Government's Basic Pension Plus proposal, relative to the existing tax regime. - (Holding answer 17 March 1997).

Answer: Ms Harman: To ask the Chancellor of the Exchequer what estimate he has made of the change in the amount of tax which people on (1) (a) a quarter, (b) a half and (c) three quarters of average earnings and (2) average earnings can expect to pay (i) over their working life and (ii) over their lifetime under the proposed tax regime of the Government's basic pension plus proposal, relative to the existing tax regime. [20435] Mr. Jack: [holding answer 17 March 1997]: The precise details of the scheme will be decided in the light of full consultation on the Green Paper. Estimates of the amount of tax paid by people over their working life and entire lifetime would also depend on the exact nature of changes in the tax regime, work patterns and life expectancy. Broadly speaking, over a lifetime, the two different tax treatments are equivalent from the saver's point of view--apart from the treatment of the lump sum--as long as the person's marginal rates of tax are the same in work and in retirement.

Secondary information