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Incomes (Tax Allowances)

Volume 448: debated on Tuesday 11 July 2006

To ask the Chancellor of the Exchequer (1) what the loss of revenue to the Exchequer would be if allowances against tax on incomes were raised by (a) £50, (b) £100, (c) £150, (d) £200, (e) £250 and (f) £300; (83799)

(2) what increase in tax revenue would follow from raising the standard rate of income tax by (a) two pence and (b) six pence at current levels of income and with no changes in the income tax allowances and rates.

The information requested can be calculated from the figures shown in table 1.6 "Direct effects of illustrative tax changes" on HM Revenue and Customs website at http://www.hmrc.gov.uk/stats/tax_expenditures/menu.htm.

The cost of changing the personal allowance or the basic income tax rate is proportional to the changes to allowances and rates provided in the table.