Clause 211 - Non-residence: money purchase arrangements

Part of Finance Bill – in a Public Bill Committee at 3:00 pm on 17th June 2004.

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Photo of George Osborne George Osborne Conservative, Tatton 3:00 pm, 17th June 2004

To sum up what the Financial Secretary seems to be saying, she has a fair point, but there is an element of rough justice and to make the system work some people will lose out. That is a disappointing answer and I do not accept her argument that the amendment would force the Government to make a great distinction between defined benefit and defined contribution schemes. The method of calculating those points, as we have discussed at length, is different, so it is not as though it is an additional distinction that does not exist at the moment. It might be difficult to apply that principle to defined benefit schemes, but it would not be that difficult to devise a way of calculating investment growth in defined contribution schemes if those contributions were clearly tagged on entry into the scheme.