asked the Chancellor of the Exchequer what would be the cost to the Inland Revenue if the first £100, £200 and £500, respectively, of investment income were made not liable to tax.

On the basis of the estimated distribution of income for 1978–79, the cost would be of the following order of magnitude:

Investment Income exempted	Estimated cost
£	£million
100	140
200	250
500	480

The costs assume that the investment income surcharge continues to apply to investment income in excess of £1,700 — £2,500 in the case of elderly taxpayers.