Written question asked by Nicholas Winterton (Conservative) on Tuesday, 14 September 2004, in the House of Commons. It was due for an answer on Monday, 4 October 2004. It was answered by Baroness Primarolo (Labour) on Monday, 4 October 2004 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, if he will estimate the cost to the Exchequer of making the first £10,000 of occupational pensions income subject to a taxation rate of 10 per cent.; and if he will make the first £10,000 of occupational income subject to a taxation rate of 10 per cent. - Inc figures.

Answer: Sir Nicholas Winterton: To ask the Chancellor of the Exchequer if he will estimate the cost to the Exchequer of making the first £10,000 of occupational pensions income subject to a taxation rate of 10 per cent.; and if he will make the first £10,000 of occupational income subject to a taxation rate of 10 per cent. [189545] Dawn Primarolo: It would cost around £2 billion to extend the starting rate of income tax to £10,000 for all non-state pensions. It would cost around £19 billion to extend the starting rate of tax to £10,000 for all earned income. These estimates are based upon the 2001-02 Survey of Personal Incomes and are consistent with the Budget 2004 forecasts.

Secondary information