Hansard

Tax Allowances

Volume 19: debated on Wednesday 3 March 1982

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Mr. Best

asked the Chancellor of the Exchequer if he will give the cost to the Treasury in a full year of (a) increasing tax allowances by 12 per cent. and (b) increasing child benefit by £1.

Mr. Ridley

The costs would be as follows:

  • (a) £1, 760 million at 1981–82 income levels. This is the cost of increasing by 12 per cent. those allowances—including the aged income limit—covered by the indexation provisions in section 24(5) of the Finance Act 1980. In calculating the cost, the allowances have been rounded up, where necessary, as specified in those provisions.
  • (b) About £550 million.