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Married Couples (Taxation)

Volume 114: debated on Monday 6 April 1987

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asked the Chancellor of the Exchequer (1) whether he will publish in the Official Report a table showing in the case of the wife's earnings election the estimated cost to the Exchequer in the next financial year, together with tables showing (a) the estimated loss of tax in terms of each combined gross income band and (b) for (i) husbands and (ii) wives, the numbers assessed separately by range of income together with the gross amount of income and the gross amount of unearned income;(2) whether he will publish in the

Official Report a table showing for the next financial year information concerning wife's earned income allowance on the same basis as given in his reply of 24 July 1986, Official Report, at column 467.

[pursuant to his replies of 23 March 1987, c. 41 and 27 March 1987. c. 307]: I assume that the hon. Member is referring to the information on the wife's earnings election in column 467 of the Official Report of 24 July 1986.Estimates for 1987–88 of the numbers of elections, the direct revenue costs, and the levels of incomes expected are in the tables. Estimates are based on a projection of the 1984–85 survey of personal incomes and are therefore provisional.

Table 1—Wife's earnings elections, 1987–88
Range of joint total income (lower limit) (£ per annum)Elections (thousands)Direct revenue costs (£ million)
20,000
25,0005010
30,000175125
40,0005580
50,00050185
Total330400
Table 2—Wife's earnings elections, 1987–88 by husband's income
Range of husband's total income' (lower limit) (£ per annum)ElectionsHusband's income
(thousands)Aggregate total income1 (£ million)Aggregate investment income (£ million)
10,0001016015
15,000801,35075
20,0001603,900270
30,000602,070220
50,000201,560230
1 Total income is husband's earned income plus husband's investment income.
Table 3—Wife's earnings elections, 1987–88 by wife's income
Range of wife's total income1 (lower limit) (£ per annum)ElectionsWife's income
(thousands)Aggregate total income1 (£ million)Aggregate investment income (£ million)
5,00010081015
10,0001401,69045
15,0005086055
20,0003064060
30,0001053055
1 Total income is wife's earned income plus wife's investment income.