HC Deb 05 March 1925 vol 181 c644
93. Mr. DALTON

asked the Chancellor of the Exchequer how much revenue would be lost in the first year and in a full year, respectively, by raising the present child allowances to Income Tax payers to £45 a year for every child?

Mr. CHURCHILL

If the Income Tax allowances for children were raised to a uniform allowance of £45 in respect of each child, it is estimated that at the present rate of tax the approximate loss of revenue would be £2,250,000 in a full year and £900,000 in the first year.

94. Mr. DALTON

asked the Chancellor of the Exchequer how much revenue would be lost in the first year and in a full year, respectively, by raising the personal allowance for Income Tax from the present figure of £135 to £180 a year; and what saving in cost of assessment and collection would result from this change?

Mr. CHURCHILL

It is estimated that the loss of revenue at the present rate of tax arising from an increase of the personal allowance of £135 to £180 (the personal allowance of £225 remaining unchanged) would be about £7,500,000 in a full year, and £3,000,000 in the first year. The saving in the cost of assessment and collection might amount to £350,000 in a full year: in the first year it would not be more than one-third of this amount.