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Peers (Allowances)

Volume 929: debated on Thursday 7 April 1977

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asked the Chancellor of the Exchequer whether he will give a table of figures showing what a £16·50 per day tax-free allowance to be paid to Members of the House of Lords would be worth gross to a person with and without a married allowance for tax purposes who is in receipt of £1,000, £2,000, £3,000, £4,000, £5,000, £10,000, £20,000, £30,000 and £50,000 per annum.

Assuming the tax rates and allowances proposed for 1977–78—including the reduction of the basic rate of income tax to 33 per cent.—the figures are as follows:

Value before tax of £16·50 per day tax-free allowance to:
Annual incomeSingle personMarried man
££ per day£ per day
1,00024·6323·89
2,00024·6324·63
3,00024·6324·63
4,00025·3425·01
5,00026·9526·18
10,00045·8444·07
20,00091·4390·12
30,00097·0697·06
50,00097·0697·06
The figures represent the gross amount per day that, at different income levels, leaves £16·50 per day after payment of tax. It has been assumed that in 1977–78 the allowance will be paid for 151 days, the same number as in 1976–77, and that after-tax income for the year is thus increased by 151 times the allowance.