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Income Tax

Volume 488: debated on Tuesday 24 February 2009

To ask the Chancellor of the Exchequer 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 lowering the higher 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. (256223)

The estimates of increasing the personal allowance and 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/tablel-6.pdf

The figures exclude any estimate of behavioural response.