§ 93. Mr. DALTONasked 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. CHURCHILLIf 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. DALTONasked 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. CHURCHILLIt 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.