§ Mrs. Chalkerasked the Chancellor of the Exchequer if he will estimate what would be the cost of raising child tax allowances to a level so that the married man with children's tax threshold is above the FIS entitlement level; and if he will estimate what would be the net 608W cost if all child tax allowances were allowed only at the standard rate.
§ Mr. Robert SheldonAssuming that the proposal applied to single persons with dependent children as well as to married parents, the estimated cost for 1975–76 would be about £1,060 million. If the increase in tax allowances together with existing child tax allowances were to count for tax relief only at the basic rate the net cost of the proposal would be about £950 million.
§ Mrs. Chalkerasked the Chancellor of the Exchequer to what level child tax allowances would need to be raised in order to lift the tax threshold for a married man above the FIS entitlement level; and if he will estimate what further rises would be needed in order to keep the tax threshold above the FIS entitlement level for the 1976–77 financial year.
§ Mr. Robert SheldonThe tax thresholds for single persons with dependent children and for married parents would need to be raised by varying amounts depending on the number of children, but, on average, the increase required per family to raise the tax threshold to the FIS level would be about £430. Figures for 1976–77 will depend on any changes to tax allowances and FIS entitlement levels.