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Income Tax

Volume 978: debated on Wednesday 6 February 1980

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asked the Chancellor of the Exchequer, further to his replies to the hon. Member for Norfolk North, Official Report, 4th December 1979, c. 181 and 7 December 1979, c. 399, what would be the combined cost of introducing an adult tax allowance for both sexes at £1,500, and of altering tax rates to start at 15 per cent. on the first £1,000 taxable income, increasing by 5 per cent. on each subsequent £1,000 band up to a maximum of 50 per cent.

About £6,300 million for a full year at 1979–80 income levels, on the assumption that the allowances are transferable between husband and wife, and that husband and wife are each entitled to their own scales of taxable income.

asked the Chancellor of the Exchequer how much of the (a) mortgage interest tax relief, (b) retirement annuity relief and (c) life assurance relief in 1979–80, was attributable to higher rate taxpayers in excess of relief at the basic rate.

The information for a full year at 1979–80 income levels is as follows:

  • a. Mortgage interest relief—about £100 million.
  • b. Retirement annuity relief—about £30 million.
  • c. Life asuance relief—nil.