asked the Chancellor of the Exchequer how many people have been lifted out of tax by the personal allowances above that increase required by indexation; and how many of them (a) have children and (b) are estimated to be caught in the poverty trap.
[pursuant to his reply, 28 March 1985, c. 325]: Counting husband and wife as one, my right hon. Friend's Budget measures will mean that some 260,000 fewer tax units will pay tax in 1985–86 than if allowances had only been indexed. Of these 260,000, some 40,000 have children and approximately 10,000 are in receipt of means-tested benefits.
asked the Chancellor of the Exchequer what is the cost to the Exchequer in 1985–86 of the married man's tax allowance in excess of the single person's allowance; how much of this cost is attributable to taxpayers aged below 65 years; and what is the weekly value of this extra relief to a married man paying income tax at the standard rate.
[pursuant to his reply, 28 March 1985, c. 325]: The direct revenue cost of the married man's allowance, in excess of the single person's allowance, is estimated to be £4·4 billion in a full year at 1985–86 income levels. Of this, some £3·9 billion is in respect of those aged under 65. The extra relief is worth £7·21 a week in 1985–86 to a non-aged basic rate taxpayer.