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<p>The ‘Estimated Costs of Tax Reliefs’ publication sets out an estimate of the cost
of the exemption from National Insurance contributions for those over state pension
age. It is available here:</p><p> </p><p><a href="https://www.gov.uk/government/statistics/minor-tax-expenditures-and-structural-reliefs"
target="_blank">https://www.gov.uk/government/statistics/minor-tax-expenditures-and-structural-reliefs</a></p><p>
</p><p>This publication estimates the latest cost of this exemption in 2019-20 at
around £1billion. The figures can be found in the ‘Estimated costs of structural tax
reliefs’ table:</p><p> </p><p><a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/837775/Structural_FINAL.xlsx"
target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/837775/Structural_FINAL.xlsx</a></p><p>
</p><p>As noted in the publication, the estimated costs do not represent the yield
if the exemption were to be abolished. In practice if a relief was withdrawn, taxpayers’
behaviour would often alter so that the actual yield would be very different from,
and often smaller than, that shown in the tables.</p><p><strong> </strong></p>
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