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Surtax

Volume 640: debated on Thursday 18 May 1961

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asked the Chancellor of the Exchequer what would be the estimated cost in a full financial year of raising the level of Surtax on unearned income to £5,000, £4,000, and £3,500, respectively.

I am not sure what my hon. Friend has in mind as regards the many cases of mixed incomes. Assuming that he does not want to withdraw any benefits to earned income proposed in the Budget the schemes outlined below would implement his suggestions. The estimated costs, which relate to a full year, are additional to the cost of the Budget proposals.To raise the general exemption limit for Surtax to £5,000 and in addition to allow for Surtax the earned income relief allowable for Income Tax would cost £58 million.To raise the general exemption limit for Surtax to £4,000 and in addition to allow for Surtax the earned income relief allowable for Income Tax would cost £38 millionTo raise the general exemption limit for Surtax to £3,500 and in addition to allow for Surtax both the earned income relief allowable for Income Tax and a special earnings allowance of up to £500 would cost £30 million.