§ Mr. H. WILLIAMSasked the Chancellor of the Exchequer how many persons he anticipates will be relieved from the payment of any Income Tax whatsoever by the increase in the earned income allowances proposed in the Budget, and by the extension of those allowances to persons over 65 years of age with investment incomes of less than £500 per annum.
Mr. GUINNESSIt is anticipated that, as a result of the proposed increase in the earned income allowance and the extension of that allowance to the invest- 65W ment income of persons over 65 years of age whose total income does not exceed £500, approximately 270,000 persons who at present pay Income Tax will no longer be liable to tax. It is not possible to divide this figure between the two proposals; the number affected by the extension to persons over 65 years of age must, however, be comparatively small.
§ Mr. LEES-SMITHasked the Chancellor of the Exchequer what would be the cost to the Exchequer of increasing the allowance for children for Income Tax purposes to £50 for the first child and £40 for other children?
Mr. GUINNESSIt is estimated that the cost of increasing the allowance for children for Income Tax purposes to £50 for the first child and £40 for other children would be about £2,250,000 in a full year.