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Personal Tax Allowances

Volume 981: debated on Monday 24 March 1980

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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.

asked At 1979–80 income levels the estimated costs for a full year are:—

Personal allowanceCost* £ millionEstimated amount† included by virtue of higher rate £ million
Married person7,050175
Single person3,46070
Wife's earned income2,05040
Age allowance290‡Nil
Additional personal allowance70Negligible
Child allowance7Negligible
Blind person's allowance1Negligible
Dependent relative25Negligible
Son's or daughter's serviceUnder 1Nil
* The figure quoted represents the estimated tax yield if each of the allowances is withdrawn separately. They do not include tax which would become due if the allowances were withdrawn from persons not on Inland Revenue records because their incomes are below tax thresholds.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.