asked the Chancellor of the Exchequer how much it would be necessary to increase tax thresholds for single persons, childless married couples and married couples with one, two, three, four and five children, respectively, to preserve real values since April 1974; how many individuals would be taken out of the tax bracket if the thresholds were raised to these levels; and what would be the respective figures to restore 1966 real value.
On the basis of the increase in the retail price index—all items—between April 1974 and January 1975, the latest available figure, the tax thresholds for single persons and childless married couples would need to be increased from their present levels of £625 and £865 to £707 and £978 respectively. For married couples with children the threshold depends upon the ages of the children. To preserve the real value of child tax allowances over the same period would require increases as follows:
|Age of child||Present allowance £||1974 allowance uprated by RP1 £|
|Over 11 but under 16||275||311|
|Over 11 but under 16||349|