asked the Chancellor of the Exchequer what would be the cost to the revenue of giving tax relief on class II and class IV national insurance contributions paid by self-employed contributors (a) if relief were given on the total of both contributions and (b) if relief were given only on the amount by which the total of both contributions exceeded five per cent. of earnings.
, pursuant to his reply [Official Report, 21st May 1975; Vol. 892, c. 427], gave the following information:Information on which to base a precise calculation is not available, but it is estimated that the full-year cost for 1975–76 of allowing tax relief on class II and class IV contributions would be about £80 million. If relief were limited to contributions in excess of 5 per cent. of earnings the cost would be about £30 million.