Only a few days to go: We’re raising £25,000 to keep TheyWorkForYou running and make sure people across the UK can hold their elected representatives to account.

Donate to our crowdfunder

Clause 5 - Drawdown requirements for SaRA schemes

Part of Rights of Savers Bill – in a Public Bill Committee at 3:15 pm on 14th December 2005.

Alert me about debates like this

Photo of Stephen Timms Stephen Timms The Minister of State, Department for Work and Pensions 3:15 pm, 14th December 2005

It remains very important, because that framework would encourage people to save for retirement. That is the purpose of the vehicle; it has extra flexibility to encourage people to save. However, the purposes need to be tightly defined. I presume that the reason for the three purposes is that the Government already use the tax system to encourage people to save for such purposes. Although it is true that the tax benefits would be lost if the loan was not repaid in a particular time, it is still a tax advantage saving vehicle for these purposes. I suggest that it is very difficult to argue that the tax advantage character of that vehicle should be available for the purpose in paragraph (b) unamended, let alone amended.