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Allowances And Reliefs

Volume 129: debated on Tuesday 15 March 1988

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To ask the Chancellor of the Exchequer if he will publish a table showing the real increase in the direct tax allowances and reliefs published in table 6·5 of "The Government's Expenditure Plans 1988–89 to 1990–91,"Cm 288–1.

[holding answer 3 March 1988]: The table shows the percentage change, in real terms, between 1986–87 and 1987–88 of the latest estimates of the cost of direct tax allowances and reliefs, based on the forecast movement of 4 per cent. in the general index of retail prices to 1987–88. The percentage changes should be treated only as an approximate guide. Excluded from the table are those reliefs marked with an asterisk in table 6·5 of Cm 288–1 or in the corresponding 1986–87 table because the estimates were subject to a wide margin of error, and those reliefs whose costs were £5 million or less in either year.

Estimated change in cost in real terms between 1986–87 and 1987–88
Per cent.
Income Tax
Married man's allowance-3
Single person's allowance-5
Wife's earned income allowance-1
Husband and wife; election for separate taxation of wife's earnings50
Age allowance-1
Additional personal allowance for one parent family-4
Widow's bereavement allowance-4
Dependent relative allowance-4
Relief for:
Employees' contributions to occupational pension schemes-2
Investment income of occupational pension schemes-3
Lump sum payments to pensioners-7
Retirement annuity premiums4
Life assurance premiums (where insurance contract made before 14 March 1984)-14
Qualifying interest on loans for purchase or improvement of owner-occupied etc property-2
Schedule E work expenses allowed as a deduction-7
Half of Class 4 National Insurance Contributions-5
Exemption of:
Income of charities8

Per cent.

British government securities where owner not ordinarily resident in United Kingdom6
Foreign service allowance paid to Crown Servants abroad-4

Petroleum Revenue Tax

Uplift on qualifying expenditure13
Relief for exploration and appraisal expenditure-22
Oil allowance—Petroleum Revenue Tax49
Safeguard: restricting petroleum revenue tax to not more than 80 per cent. of the excess over a 30 per cent. return on historic capital cost72
Tariff receipt allowance0

Capital Gains Tax

Exemption of:
First £6,600 of gains of individuals and first £3,300 of gains of trustees13

Inheritance Tax/Capital Transfer Tax

Exemption of:
Transfers to charities on death-4
Relief for:
Agricultural property-4
Business property-4

Stamp Duty

Exemption of:
Transfers of government stocks and loan stocks11
Transfers of houses or other property (not stocks and shares) where the consideration does not exceed £30,000-4