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Mr. Field
asked the Chancellor of the Exchequer what is the estimated cost of the granting of each of the personal allowances; and how much of these costs are due to the allowances being claimed at higher rates of tax.
Mr. Peter Rees
asked At 1979–80 income levels the estimated costs for a full year are:—
| Personal allowance | Cost* £ million | Estimated amount† included by virtue of higher rate £ million |
| Married person | 7,050 | 175 |
| Single person | 3,460 | 70 |
| Wife's earned income | 2,050 | 40 |
| Age allowance | 290‡ | Nil |
| Additional personal allowance | 70 | Negligible |
| Child allowance | 7 | Negligible |
| Blind person's allowance | 1 | Negligible |
| Dependent relative | 25 | Negligible |
| Housekeeper | 1 | Negligible |
| Son's or daughter's service | Under 1 | Nil |
| * The figure quoted represents the estimated tax yield if each of the allowances is withdrawn separately. They do not include tax which would become due if the allowances were withdrawn from persons not on Inland Revenue records because their incomes are below tax thresholds. | ||
| † The estimated amount included by virtue of higher rate represents the yield if the relict was restricted to relief at the basic rate. | ||
| ‡. The figure represents the cost of the amount of age allowance in excess o the ordinary personal allowance. | ||