Written question asked by Ian Bruce (Conservative) on Tuesday, 24 April 2001, in the House of Commons. It was due for an answer on Friday, 11 May 2001. It was answered by Baroness Primarolo (Labour) on Friday, 11 May 2001 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, if he will make a statement regarding the impact of advanced corporation tax credits on Scottish pensioners. - (Holding answer 8 May 2001).

Answer: Mr. Ian Bruce: To ask the Chancellor of the Exchequer if he will make a statement regarding the impact of advanced corporation tax credits on Scottish pensioners. [159297] Dawn Primarolo: [holding answer 8 May 2001]: The Government's package of corporation tax reforms included not only the withdrawal of payable tax credits, but also cuts in corporation tax rates. The withdrawal of payable credits removed a distortion in the tax system which encouraged companies to pay out their profits as dividends, rather than retain them for reinvestment in the business. These and other measures help to improve investment performance. The effect of these changes on the size of UK pension funds varies depending upon many factors, such as the type of scheme; the take-up of private pensions; the level of future contributions and the investment policy adopted by fund managers.

Secondary information