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Savings And Earnings

Volume 977: debated on Monday 28 January 1980

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asked the Chancellor of the Exchequer what would be the loss to the Revenue if the first £500 of new, or additional savings made by individuals was treated as a deduction from earnings for tax purposes.

The cost would depend on a number of factors, including the number of taxpayers who qualified for relief and the marginal rate of tax at which they were liable. But, by way of illustration, the cost of a £500 relief for each million basic rate taxpayers would be £150 million.