Written question asked by Baroness Harman (Labour), in the House of Commons. It was due for an answer on Thursday, 20 March 1997. It was answered by Michael Jack (Conservative) on Thursday, 20 March 1997 on behalf of the Treasury.

Treasury

Question: If the five per cent. NIC rebate which individuals will receive under the Government's Basic Pension Plus proposal will be disregarded for income tax purposes. - Inc fact that tax relief which is currently given where NIC rebates go into a personal pension would cease, but the pensions in payment would be tax-free. (Holding answer 17 March 1997).

Answer: Ms Harman: To ask the Chancellor of the Exchequer if the five per cent. national insurance contribution rebate which individuals will receive under the Government's basic pension plus proposal will be disregarded for income tax purposes. [20436] Mr. Jack: [holding answer 17 March 1997]: The effect of the change for the 5 per cent. NIC rebate would be that the tax relief which is currently given where NIC rebates go into a personal pension would cease, matching the withdrawal of relief on contributions which an individual makes to a pension scheme; but the pensions in payment would be tax-free.

Secondary information

Type: Written question
Reference: 20436; 292 c788W
Session: 1996-97
Subjects: Income tax Pensions National insurance contributions Tax allowances