§ There are two minor reliefs in personal taxation which I propose to make in order to help those whose cases seem to me especially deserving. First, what is called small income relief. I propose to raise the income limit for this relief on the investment income of people under 65. This limit has not been raised since 1955, though the income limit for the age relief, which gives corresponding relief on investment income for people 974 over 65, has since then gone up, by two stages, from £600 to £800.
§ I propose to put up the limit for people under 65 from £300 to £400. This will mean that, for example, a single woman under 65 with an income of £400, drawn solely from investments, will be £22 better off this year. There will be an appropriate adjustment to the marginal relief provisions. This change will cost about £l½ million in a full year and £½ million this year.
§ The second proposal concerns the Income Tax age exemption. This gives a special exemption in favour of people of 65 or over living on small incomes not much above the amounts which are freed from tax by personal allowances and reliefs. At present, an elderly single person pays no tax if his income does not exceed £275; and a married couple, where either husband or wife is 65 or over, are exempt if their joint income does not exceed £440. I propose to raise the exemption limit for the elderly single person to £300 and the limit for the elderly married couple to £480. This means that such a couple with £480 a year will not in future pay tax. This makes a difference of £18 this year. This change will cost £2½ million in a full year and £1½ million this year.