Written question asked by Annabelle Ewing (Scottish National Party) on Tuesday, 26 March 2002, in the House of Commons. It was due for an answer on Thursday, 11 April 2002. It was answered by Andrew Smith (Labour) on Thursday, 11 April 2002 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what rules in respect of double taxation are applicable to the Scottish Bus Group employee pension fund. - Inc figures.

Answer: Annabelle Ewing: To ask the Chancellor of the Exchequer what rules in respect of double taxation are applicable to the Scottish Bus Group employee pension fund. [48284] Mr. Andrew Smith: A surplus from a pension fund scheme can carry a tax liability. A tax charge is provided for under section 601 of the Income and Corporation Taxes Act 1988. It applies to all payments to an employer from the funds of an exempt approved pension scheme, as the Scottish Transport Group schemes are. The current rate at which the tax is charged is 35 per cent. in accordance with Section 74 of the Finance Act 2001. The tax payable on payments to pensioners will depend on the personal tax circumstances of the individual. Payments have yet to be finalised.

Secondary information