Skip to main content

Taxation: Personal Allowance

Volume 713: debated on Tuesday 27 October 2009

Questions

Asked by

To ask Her Majesty's Government what is the most recent estimate of the costs of making the personal allowance transferable between couples for each of the next five years. [HL5607]

To ask Her Majesty's Government what is the most recent estimate of the total financial effect on (a) married couples with children, and (b) married couples without children of making the personal allowance transferable for each of the next five years. [HL5608]

To ask Her Majesty's Government what is the most recent estimate of the proportion of individuals who are married who would benefit from a transferable personal tax allowance for each of the next five years. [HL5609]

Due to the complex nature of these Questions the following estimates should be treated with caution. These estimates exclude any behavioural response to the change, which could be significant given the magnitude of the change.

The estimated cost of allowing personal tax allowances to be transferred between married couples and civil partners would be £4.9 billion for 2009-10 and would benefit around 41 per cent of married couples and civil partnerships. Married couples with children will be better off by around £290 per year on average. Those without children will be better off by around £150 per year on average.

These estimates have been calculated using HM Treasury's tax and benefit micro-simulation model using Family Resources Survey 2007-08 data.