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Income Tax (Age Allowance)

Volume 894: debated on Friday 27 June 1975

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asked the Chancellor of the Exchequer if he will amend the scheme of the new age allowances for income tax purposes so as to provide for a proper reduction in the allowance at the rate of £1 in £5 or some other less severe rate of reduction; and what would be the estimated reduction in the tax yield for income tax for the year 1975–76 as a result of granting such relief.

, pursuant to his reply [Official Report, 26th June 1975; Vol. 894, c. 264], gave the following information:The cost for 1975–76 of amending Clause 29 of the Finance Bill now before Parliament— which makes provision for the age allowance— in the way proposed would be about £15 million. Apart from its cost this proposal would substantially increase the band of income over which the allowance is withdrawn, and I do not think the change would be justified.