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Tax Allowances

Volume 951: debated on Tuesday 13 June 1978

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asked the Chancellor of the Exchequer whether he will estimate the cost in 1978–79 of a 25 per cent. increase in the main personal income tax allowances; how much of that cost relates to (a) the married allowance, (b) the single person's allowance, (c) the married age allowance, (d) the single age allowance and (e) the allowance for wife's earned income; and if he will estimate how many persons are estimated to be in each category in 1978–79.

The cost at 1978–79 income levels after taking account of the changes proposed in the Budget Statement is about £2,600 million, allocated approximately as follows:

CostEstimated number of taxpayers in 1978–79
£ millionMillion
(a) Married allowance1,47511·4
(b) Single person's allowance6207·4
(c) Married age allowance1001·0
(d) Single age allowance901·2
(e) Wife's earned income allowance3304·7

asked the Chancellor of the Exchequer whether he will estimate the cost in 1978–79 of a 50 per cent. increase in the main personal income tax allowances; and how much of that cost relates to (a) the married allowance, (b) the single persons' allowance, (c) the married age allowance, (d) the single age allowance (e) the allowance for wife's earned income.

The cost at 1978–79 income levels, after taking into account the changes proposed in the Budget Statement, is about £5,000 million allocated approximately as follows:—

£m
a. Married allowance2,850
b. Single person's allowance1,200
c. Married age allowance175
d. Single age allowance155
e. Wife's earned income allowance620