Income Tax: Reliefs And Allowances

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asked Her Majesty's Government:To list in the

Official Report:

(a) the revenue forgone in 1975–76 due to the following reliefs and allowances;

(b) the estimated saving in revenue if each of these was allowed only at the standard rate—

Single person;
Married person;
Wife's earned income;
Child allowance;
Dependent relative;
Additional personal child allowance;
Additional personal relief;
Housekeeper allowance;
Married age allowance;
Age allowance;
Mortgage Interest relief;
Life Assurance relief;
Bank Loan interest (for house purchase);
Superannuation;
Fees to professional bodies;
Work expenses.

The estimates for 1975–76 are as follows:

Allowance/relief	Revenue Cost	Saving if relief allowed only at basic rate of tax
	£ million	£ million
Single person	2,180	35
Married person	4,210	155
Wife's earned income	1,080	30
Child	1,250	50
Dependent relative	35	1
Additional persona allowance (1)	30
Housekeeper	1½
Age Allowance—
Married	135	NIL
Single	80	NIL

Mortgage Interest relief	865	80
Life Assurance relief	215	NIL
Bank loan Interest (for house purchase)	52	5
(also included in Mortgage Interest Relief above)
Superannuation (2)	(2)	(2)
Fees to professional bodies (3)	105	25
Work expenses (3)	105	25

(1) There is no additional personal child allowance. The additional personal allowance is available to those with single-handed responsibility for resident children for whom the child tax allowance can be claimed.

(2) The latest information on which to base estimates is the Government Actuary's Survey of Occupational Pension Schemes for 1971. The estimated relief for 1971–72 was £155 million on employees' contributions and £290 million on employers' contributions. It is not possible to estimate the saving if relief were allowed only at the basic rate.

(3) The available figures refer to the estimated cost for total expenses allowed as deductions under Schedule E.

Volume 375: debated on Monday 18 October 1976