To ask the Chancellor of the Exchequer (1) if he will estimate the effect on Treasury revenues in a full year in (a) 1991–92 and (b) 1992–93 of introducing an upper limit on all income tax allowances and reliefs of (i) £10,000, (ii) £15,000 and (iii) £20,000 a year, limiting all personal tax allowances except the single person's allowance and relief on contributions to personal pensions to the basic rate, with a 50 per cent. income tax band on taxable incomes of (1) £31,705 and above, (2) £33,705 and above, (3) £36,705 and above, (4) £38,705 and above, (5) £41,705 and above, (6) £43,705 and above, (7) £66,705 and above and (8) £76,705 and above, giving the total revenue in each case and the numbers of people affected;(2) if he will estimate the effect on Treasury revenues in a full year in

[holding answer on 21 January 1992]: It is estimated that at 1991–92 levels of income the introduction of the upper limits specified would yield the following.

Yield following restriction of specified allowances and relief on contributions to personal pensions to the basic rate (£ million)
50 per cent. taxable income thereshold	Upper Limit for total allowances and reliefs
	£10,000	£15,000	£20,000
£31,705	470	200	120
£33,705	470	200	120
£36,705	470	200	120
£38,705	470	200	120
£41,705	470	200	120
£43,705	470	200	120
£66,705	470	200	120
£76,705	460	200	120

Yield following restriction of specified allowances and relief on contributions to occupational pension schemes limited to the basic rate (£ million)
50 per cent. taxable income threshold	Upper limit for total allowance and reliefs
	£10,000	£15,000	£20,000
£31,705	540	240	150
£33,705	540	240	150
£36,705	530	240	150
£38,705	530	240	150
£41,705	530	240	150
£43,705	530	240	150
£66,705	520	230	140
£76,705	520	230	140

Yield following restriction of specified allowances and relief on contributions to personal pensions and occupational pensions to the basic rate (£ million)
50 per cent. taxable income threshold	Upper limit for total allowances and reliefs
	£10,000	£15,000	£20,000
£31,705	450	190	120
£33,705	450	190	120
£36,705	450	190	120
£38,705	450	190	120
£41,705	450	190	120
£43,705	450	190	110
£66,705	440	190	110
£76,705	440	180	110

The number of people with total allowances and reliefs in excess of £10,000 is about 635,000. The corresponding figures for £15,000 and £20,000 are about 75,000 and 35,000 respectively.The estimates of revenue yield do not take account of any behavioural effects which might result from the introduction of such a limit.It is not possible to provide corresponding detailed estimates for 1992–93.

To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in a full year in (a) 1991–92 and (b) 1992–93 of introducing an upper limit on all income tax allowances and reliefs of (i) £10,000, (ii) £15,000 and (iii) £20,000 a year, with a 50 per cent. income tax band on taxable incomes of (1) £31,705 and above, (2) £33,705 and above, (3) £36,705 and above, (4) £38,705 and above, (5) £41,705 and above, (6) £43,705 and above, (7) £66,705 and above and (8) £76,705 and above, giving the total revenue in each case and the numbers of people affected.

[holding answer 21 January 1992]: After the introduction of a 50 per cent. tax band the estimated further yield from imposing the specified limits would be as follows:

Full year yield at 1991–92 income levels
Threshold for 50 per cent. tax	Limit for total allowances and reliefs
	£10,000	£15,000	£20,000
£31,705	710	290	170
£33,705	700	290	170
£36,705	700	290	170
£38,705	700	290	170
£41,705	690	290	170
£43,705	690	290	170
£66,705	660	280	170
£76,705	650	280	170

The number of people with total allowances and reliefs in excess of £10,000 is about 635,000. The corresponding figures for £15,000 and £20,000 are about 75,000 and 35,000 respectively.It is not possible to provide corresponding detailed estimates for 1992-9–.