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Income Tax: Reliefs And Allowances

Volume 375: debated on Monday 18 October 1976

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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/reliefRevenue CostSaving if relief allowed only at basic rate of tax
    £ million£ million
    Single person2,18035
    Married person4,210155
    Wife's earned income1,08030
    Dependent relative351
    Additional persona allowance (1)30
    Age Allowance—
    Mortgage Interest relief86580
    Life Assurance relief215NIL
    Bank loan Interest (for house purchase)525
    (also included in Mortgage Interest Relief above)
    Superannuation (2)(2)(2)
    Fees to professional bodies (3)10525
    Work expenses (3)

  • (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.