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Tax Reliefs And Allowances

Volume 897: debated on Monday 4 August 1975

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asked the Chancellor of the Exchequer if he will publish in the Official Report (a) how much each of the income tax reliefs and allowances cost the Exchequer in the revenue year 1970–71 and for whatever year the latest figures are available and (b) in each of those years how much of these reliefs, by category, were claimed by persons whose gross income was over the level of surtax in that year.

I regret that figures are not readily available for the 24 reliefs and allowances operating in each of the years 1970–71 and 1972–73, the final year for surtax, and to obtain them would require a disproportionate expenditure of time and effort. My hon. Friend has put down a similar Question in respect of 1974–75, and I shall let him have the figures for that year as soon as the necessary calculations have been made.

asked the Chancellor of the Exchequer if he will list in the Official Report (a) details of tax allowances granted during the most recent financial year, (b) the total sum of revenue forgone in each main category of tax

Amount of allowanceRevenue foregoneProportion at higher rates
££m.Per cent.
Wife's earned income62596010
Children's allowance
Over 163059023
Over 11 not over 1627535010
Additional personal allowance180153
Housekeeper allowance10020
Dependent relative allowance
Daughter's services55less than ¼50
Maintained by single woman145101
Other cases100257
Blind persons allowance1307
Age exemptionIncome limit
(1) The revenue forgone has been measured by estimating the additional yield that would have been received if each individual allowance had been withdrawn without any change in other allowances.
(2) The figures for age exemption represent the additional yield that would have been received if age exemption had been withdrawn but those entitled to it had continued to receive the single and married personal allowances. The additional yield from the withdrawal of such continuing allowances is included in the figures for the single and married personal allowances.
(3) The figures for revenue forgone cannot be added together to give the total cost of all allowances and reliefs. The additional revenue that would have been received if all allowances and reliefs had been withdrawn and, at the same time, the deduction for family allowances had been abolished, is estimated to amount to £8,080 million of which 9 per cent. would have been payable at the higher rates.
(4) The proportion of the reliefs granted to those subject to higher rates of tax has been estimated as the proportion of the additional yield that would have been chargeable at the higher rates.