§ 74. Mr. Osborneasked the Chancellor of the Exchequer the estimated cost of doubling the earned income allowance, of a reduction of 1s. in the standard rate of Income Tax, and of increasing from £2,000 to £3,000 for the commencement of Surtax payments, respectively; and if he will bear in mind that these are the actions which industry is hoping he will be able to take.
§ Mr. PowellTo double earned income relief, making the fraction four-ninths, would cost about £600 million. A reduction of 1s. in the standard rate of Income Tax, with corresponding reductions in the reduced rates, would cost about £270 million. An increase from £2,000 to £3,000 in the starting point for Surtax would cost about £49 million if the rates now charged on successive slices of income above £2,000 were applied to corresponding slices above £3,000. All these costs are for a full year; in the first year the figures would be lower.
§ 79. Mr. Beswickasked the Chancellor of the Exchequer what steps he proposes to take to end the anomaly under which barristers on retirement from the Bar are not liable for tax on those fees collected after retirement.
§ Mr. PowellI cannot anticipate my right hon. Friend's Budget statement.