Skip to main content

Income Tax

Volume 487: debated on Tuesday 10 February 2009

To ask the Chancellor of the Exchequer (1) if he will estimate the cost to the Exchequer of raising the income tax personal allowance to £11,000 and raising the higher rate of income tax by (a) 1 per cent., (b) 2 per cent., (c) 3 per cent., (d) 4 per cent. and (e) 5 per cent. in 2009-10; (255673)

(2) if he will estimate the cost to the Exchequer of raising the income tax personal allowance to £11,000 and lowering the higher rate of income tax by (a) 1 per cent., (b) 2 per cent., (c) 3 per cent., (d) 4 per cent. and (e) 5 per cent. in 2009-10;

(3) what estimate he has made of the cost to the Exchequer of raising the income tax personal allowance to £12,000 and lowering the higher rate of income tax by (a) 1 per cent., (b) 2 per cent., (c) 3 per cent., (d) 4 per cent. and (e) 5 per cent. in 2009-10;

(4) what estimate he has made of the cost to the Exchequer of raising the income tax personal allowance to £8,000 and lowering the higher rate of income tax by (a) 1 per cent., (b) 2 per cent., (c) 3 per cent., (d) 4 per cent. and (e) 5 per cent. in 2009-10;

(5) what estimate he has made of the cost to the Exchequer of raising the income tax personal allowance to (a) £8,000, (b) £9,000, (c) £10,000, (d) £11,000 and (e) £12,000 in 2009-10;

(6) what estimate he has made of the cost to the Exchequer of raising the income tax personal allowance to (a) £8,000, (b) £9,000 and (c) £10,000 and raising the higher rate of income tax by (i) 1 per cent., (ii) 2 per cent., (iii) 3 per cent., (iv) 4 per cent. and (v) 5 per cent. in 2009-10.

The estimates of increasing the personal allowance alone or increasing the personal allowance and raising or lowering the higher rate of income tax can be approximated from table 1.6 ‘Direct effects of illustrative tax changes’ on the HM Revenue and Customs website at:

http://www.hmrc.gov.uk/stats/tax_expenditures/table1-6.pdf

The figures exclude any estimate of behavioural response.

To ask the Chancellor of the Exchequer (1) what estimate he has made of the cost to the Exchequer of raising the income tax personal allowance to (a) £8,000, (b) £9,000, (c) £10,000, (d) £11,000 and (e) £12,000 and raising the basic rate of income tax by (i) one per cent., (ii) two per cent., (iii) three per cent., (iv) four per cent. and (v) five per cent. in 2009-10; (255687)

(2) if he will estimate the cost to the Exchequer of raising the income tax personal allowance to (a) £8,000, (b) £9,000, (c) £10,000, (d) £11,000 and (e) £12,000 and lowering the basic rate of income tax by (i) one per cent., (ii) two per cent., (iii) three per cent., (iv) four per cent. and (v) five per cent. in 2009-10.

The information requested is not available. The information available on the Exchequer effect of changes to personal allowances and income tax rates provides for costs estimates to be made where one variable, either personal allowances or income tax rates, is altered. In scenarios involving the changing of both variables cost estimates cannot be derived as in these cases the margin of error would be excessive.