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Mr. Ralph Howell
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.
Mr. Peter Rees
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 threshold | Personal allowance | |
£ | £ | |
Single person | 2,024 | 2,024 |
Married couple | 3,227 | 3,227 |
with one child under 11 | 4,437 | 4,229 |
with two children aged 12 and 8 | 5,554 | 5,138 |
with three children aged 14, 12, and 8 | 6,649 | 6,025 |
with four children aged 16, 14, 12 and 8 | 7,761 | 6,929 |
Tax thresholds have been calculated as set out in the Official Report of 27 July 1979, Vol. 971, c. 556–58.