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Pensions
Mr. Denham: To ask the Chancellor of the Exchequer what priority groups were established in the review of pension mis-selling; what were the definitions of the membership of each group; what initial deadlines were established for the completion of the review of each group; how many and what percentage of each group had their review completed by the relevant initial deadline; how many and what percentage of each group have now had their review completed; and by what date he expects the process to be complete. [9349]
Mrs. Angela Knight: In the Securities and Investments Board's guidance of October 1994 to self-regulating organisations and recognised professional bodies, five priority groups of personal pension holders were identified for automatic review. Any personal pension holder who wants his or her case reviewed can have it reviewed.
| Priority groups | Target date by which most cases ought to be reviewed |
|---|---|
| Pension transfers, priority group 1 | 31 December 1995 |
| men aged 55 or over at the time of the transfer | |
| women aged 50 or over at the time of transfer | |
| people who have retired | |
| spouses and dependants of people who have died | |
| Pension transfers, priority group 2 | 31 December 1996 |
| men aged between 50 and 54 at the time of transfer | |
| women aged between 45 and 49 at the time of transfer | |
| Pension opt-outs, priority group 1 | 31 December 1996 |
| people who are retired/spouses or dependants of people who have died | |
| people who left an employer's scheme, were aged 35 or over at the time they took out a personal pension, and who are still with the same employer | |
| Pension opt-outs, priority group 2 | 30 June 1996 |
| people who did not join an employer's pension scheme, were aged 35 or over at the time they took out a personal pension, are paying their own money into a personal pension, and who are still with the same employer | |
| people who left an employer's pension scheme, were aged under 35 at the time they took out a personal pension, are paying their own money into a personal pension and who are still with the same employer | |
| Pension opt-outs, priority group 3 | 31 December 1996 |
| people who left an employer's pension scheme, were aged 35 or over at the time they took out a personal pension and who are no longer with the same employer |
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Data on the numbers of cases in each priority group that have been completed, and when, are not held centrally.
To speed up progress with the reviews, the SIB issued new guidance on 13 November 1996. By using the new streamlined approach in the guidance, it should be possible for investment firms to conclude case reviews more quickly and thus put matters right for investors more quickly too. At this stage, it is not clear how fast cases can now be progressed. The SIB now looks to the front-line regulators to assess what can be achieved by their members using the new guidance, and then to set and monitor challenging but appropriate targets for completing the review process.
Where suitable, personal pensions remain an excellent way for many people to secure income for their old age.
Mr. Viggers:
To ask the Chancellor of the Exchequer what change there have been in the guidance given by HM Treasury to Government Departments and non-departmental public bodies on the disposal of land and buildings and other land transactions since "DAO (GEN) 13/92", dated 23 July 1992; and if he will make a statement. [10296]
Mr. Jack:
"DAO (GEN) 13/92" has been replaced by new guidance issued as "DAO (GEN) 11/96", dated 9 July 1996. The main changes and additions are the adoption of a less prescriptive approach, fuller guidance on the position of former owners and the Crichel Down rules, guidance on the definition of market value and the removal of the requirement for prior Treasury approval for certain types of disposal. Most of the new guidance is advisory rather than mandatory; market value is defined as the best price which can reasonably by obtained; and it is recognised that there may occasionally be cases where it will be reasonable to consider wider issues and accept a lower amount than the market value. A copy of the guidance has been placed in the Library of the House of Commons.
Mr. Cohen:
To ask the Chancellor of the Exchequer if he will place in the Library copies of the letters of 30 November 1995, 18 December 1995 and 26 August 1996 from the chairman of the United Nations special commission on arms supplies to Rwanda to the
18 Dec 1996 : Column: 637
international liaison sector of United Kingdom Customs and Excise; and if he will include the replies to the letters. [7524]
Mr. Oppenheim:
It is not the normal practice of the commissioners of Customs and Excise to disclose publicly information provided to them in connection with their enforcement and investigation responsibilities. The letters from the United Nations special commission contain details provided in confidence to the United Kingdom's customs. Customs has, however, obtained the permission of the commission to make public this material. I am arranging for copies of these letters to be placed in the House Library.
When customs received copies of the letters dated 30 November 1995 and 18 December 1995, in November 1996, it found them to be requests relating to customs investigations which had already been the subject of discussions between customs investigators and commission officials on 10 January 1996. The letter of 26 August 1996 recalled the two earlier ones. Customs investigators have been in contact with commission officials and no further response to the commission letters is needed. The commission has expressed complete satisfaction with the co-operation received from the UK Government.
It would be inappropriate to discuss the material provided by customs in confidence to the UN commission. It is not customs' general practice to make public information about the existence or nature of any investigation of individuals or companies not yet accused of criminal offences, since to do so could risk prejudicing any on-going inquiries or future criminal prosecutions.
Ms Corston:
To ask the Chancellor of the Exchequer how many individuals are (a) paying tax but not national insurance contributions, (b) paying more tax than national insurance contributions and (c) paying less tax than national insurance contributions, breaking the figures down by employment category and wage bands. [8264]
Mr. Jack:
The latest estimates for 1996-97 are given in the table. National insurance contributions include both employee and the corresponding employer contributions. The three employment categories shown in the table are based on the classification used in Inland Revenue administrative systems. Inland Revenue administrative practice is to manage a taxpayer's affairs according to the "main source" of his/her income. For nearly all taxpayers this is either employment (schedule E) or self-employment (schedule D) income. In a small number of cases, the "main source" may not reflect his/her principal source of income.
| Total Income(8) £ per year | Main source(9)(11) Schedule E employment income | Main Source(9) Schedule D self employment income | Other sources(11) | Total |
|---|---|---|---|---|
| Under 5,000 | 160 | 30 | 220 | 410 |
| 5,000-10,000 | 320 | 100 | 1,890 | 2,310 |
| 10,000-15,000 | 160 | 50 | 880 | 1,090 |
| 15,000-20,000 | 70 | 20 | 390 | 480 |
| 20,000-25,000 | 30 | 10 | 180 | 220 |
| 25,000-30,000 | 20 | 10 | 170 | 100 |
| 30,000-40,000 | 20 | 10 | 70 | 100 |
| Over 40,000 | 30 | 20 | 60 | 110 |
| Total | 810 | 250 | 3,760 | 4,820 |
(8) Total income for tax purposes.
(9) The description 'main source income' follows Inland Revenue administrative practice and reflects the classification used in Inland Revenue Statistics.
(10) These figures include employees over the pension age (65 for men, 60 for women) who do not pay national insurance contributions. However, contributions are paid by their employers, where their earnings exceed the Class 1 lower earnings limit.
(11) Includes pensions and investment income.
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| Total income £ per year | Main source(12) Schedule E employment income | Main source(12) Schedule D self employment income | Other sources(13) | Total |
|---|---|---|---|---|
| Under 5,000 | 10 | -- | -- | 10 |
| 5,000- 10,000 | 730 | 560 | 30 | 1,320 |
| 10,000- 15,000 | 1,150 | 650 | 50 | 1,850 |
| 15,000- 20,000 | 1,820 | 350 | 50 | 2,220 |
| 20,000- 25,000 | 1,820 | 190 | 20 | 2,030 |
| 25,000- 30,000 | 1,110 | 120 | 20 | 1,250 |
| 30,000- 40,000 | 900 | 130 | 20 | 1,050 |
| Over 40,000 | 700 | 220 | 10 | 930 |
| Total | 8,240 | 2,220 | 200 | 10,660 |
(12) The description 'main source income' follows Inland Revenue administrative practice and reflects the classification used in Inland Revenue Statistics.
(13) Includes pensions and investment income.
| Total income £ per year | Main source(14) Schedule E employment income | Main source(14) Schedule D self employment income | Other sources(15) | Total |
|---|---|---|---|---|
| Under 5,000 | 830 | 110 | -- | 940 |
| 5,000- 10,000 | 3,810 | 230 | 10 | 4,050 |
| 10,000- 15,000 | 3,140 | -- | 10 | 3,150 |
| 15,000- 20,000 | 1,440 | -- | -- | 1,440 |
| 20,000- 25,000 | 430 | -- | -- | 430 |
| 25,000- 30,000 | 70 | -- | -- | 70 |
| 30,000- 40,000 | 10 | -- | -- | 10 |
| Over 40,000 | -- | -- | -- | -- |
| Total | 9,730 | 340 | 20 | 10,090 |
(14) The description "main source income" follows Inland Revenue administrative practice and reflects the classification used in Inland Revenue Statistics.
(15) Includes pensions and investment income.
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