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Finance Bill

I am certainly aware of the press speculation pointing to the sort of trends that the hon. Gentleman identifies, but the pension schemes that use property as part of a pension fund are very tightly controlled. Only 50 per cent. of the current value of the pension fund can be raised as a loan to fund a property purchase. The property becomes an asset of the pension fund, and there is a requirement to put all rental income into the pension fund and to lock it away. Any currently owned property that is placed in the pension fund is subject to the normal constraints. On maturity, when the pension fund needs to be drawn on, that property is deemed part of the pension fund and not the individual’s. Therefore, much of the press speculation is based on a misunderstanding of how the clauses work. If the hon. Gentleman serves on the Committee, I am sure that by probing the clauses he will be able to assure himself and the House that that is so. However, I am following carefully the speculation and ensuring wherever I can that it is speculation and not the actual result of the proposals.