asked the Chancellor of the Exchequer what is the estimated cost of allowing gifts by individuals to charities of an amount not exceeding £500 per year as a deduction for income tax purposes, assuming that such right would be exercised to its fullest extent by 10 per cent. of individuals liable to tax at rates higher than the basic rate.

pursuant to his reply [Official Report, 12th February 1976; Vol. 905, c. 307–8.] gave the following information:On the assumptions given the cost for 1975–76 would not exceed £35 million.