To ask the Chancellor of the Exchequer (1) if he will give the cost to the Exchequer in 1990–91 of allowing married couples the right to choose whether the husband or wife should have the married couple's allowance in their name; and if he will give the anticipated cost of the scheme as it is presently proposed;(2) if he will estimate the number of married couples who would pay less tax under a system which permitted them to elect which partner receives the new married couple's allowance.

[holding answers 12 April 1988]: In 1990–91 it is estimated that some 20,000 married couples where the wife is liable at the higher rate and the husband at the basic rate would benefit if they were allowed to elect which partner should receive the new married couple's allowance. Such a provision would cost approximately £5 million more than the independent taxation proposals in the Budget. For income tax, the revenue cost of these proposals in 1990–91 (based on the existing distribution of income and capital between husbands and wives) is estimated to be about £500 million.