Skip to main content

Income Tax

Volume 978: debated on Tuesday 12 February 1980

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer what would be the cost to the Exchequer of abolishing the 25 per cent. income tax rate; and what is the cost of reducing the standard rate by 1p.

At 1979–80 income levels the full year figures are estimated as follows:

£ million
Abolition of the lower rate band895(yield)
Reduction of basic rate by 1p495(cost)
These are alternatives and cannot be taken in combination: abolishing the lower rate band would increase the cost of reducing the basic rate.