§ Mr. Maurice Macmillanasked the Chancellor of the Exchequer what is the estimated yield from the abolition of the main personal tax allowances, namely, single person, married and child assuming a rate of income tax of (a) 30 per cent. (b) 35 per cent. and (c) 40 per cent. in the fiscal years 1975–76, 1976–77 and 1977–78.
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§ Mr. Robert SheldonFor 1975–76 the estimated yields from abolishing the main personal tax allowances, including the
Yield (£ million) 1975–76 with basic rate of tax: Tax allowance 35 per cent. 30 per cent. (approximate) 40 per cent. (approximate) Single … … … … 2,150 1,840 2,460 Earning wives … … … 1,050 900 1,200 Married … … … … 4,055 3,480 4,630 Child … … … … 1,200 1030 1,370 These estimates represent the additional tax yield of withdrawing at the basic rate of tax each allowance in turn. The extra yield from withdrawing all the allowances together would be less than the sum of the yields for individual allowances. The figures do not include the yield from withdrawing the allowances at the excess of higher rates of tax over the basic rate. Estimates for later years will depend on the future growth of income and changes to tax allowances.