HC Deb 08 March 1977 vol 927 cc526-7W
Mr. Raison

asked the Chancellor of the Exchequer what would be the cost in terms of loss of revenue to the Exchequer during the 1977–78 tax year of reducing the basic rate of income tax firstly from 35p to 25p in the pound and secondly from 35p to 20p in the pound in (a) the first £1,000, (b) the first £1,500, and (c) the first £2,000 of taxable income, assuming taxable income limits for higher rates of tax remain as at present.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 21st February 1977; Vol. 926, c. 419–20], gave the following information:

At 1976–77 levels of income the costs would be as follows:

First slice of taxable income
£1,000 £1,500 £2,000
Reduced rate (%)—
25 2,150 2,900 3,500
20 3,225 4,350 5,250

Mr. Raison

asked the Chancellor of the Exchequer what would be the cost in terms of loss of revenue to the Exchequer for the 1977–78 tax year if (a) the single personal allowance were raised by £150 per annum, and (b) the married man's allowance and the wife's earned income allowance were raised by £150 per annum.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 21st February 1977: Vol. 926, c. 420], gave the following information:

The cost for 1977–78 will depend on the growth of income in that year, but at 1976–77 income levels the estimated costs would be about £430 million and £860 million, respectively.

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