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Income Tax

Volume 975: debated on Monday 3 December 1979

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asked the Chancellor of the Exchequer what would be the cost in terms of lost revenue if tax thresholds, after taking into account the value of child benefits where appropriate, were restored to their 1949–50 ratio with average male manual earnings; and what would be the value of income tax thresholds for each of a single person, a married couple and couples with each of one, two, three and four dependent children.

The cost would be about £9,200 million at 1979–80 income levels. The following table shows the tax thresholds—including child benefit—and the derived personal allowances for the taxpayers specified:

Tax thresholdPersonal allowance
Single person2,0242,024
Married couple3,2273,227
with one child under 114,4374,229
with two children aged 12 and 85,5545,138
with three children aged 14, 12, and 86,6496,025
with four children aged 16, 14, 12 and 87,7616,929

Tax thresholds have been calculated as set out in the Official Report of 27 July 1979, Vol. 971, c. 556–58.