§ 23. Mr. Loyden
asked the Chancellor of the Exchequer if he will seek to introduce two lower rates of income tax below the present standard rate.
§ 28. Mr. Rooker
asked the Chancellor of the Exchequer if he has received any representations for a reduction in the basic rate of income tax.
§ 33. Mr. Fairbairn
asked the Chancellor of the Exchequer what would be the cost of exempting the interest on the first £500 and £5,000, respectively, from taxation.
§ Mr. Robert Sheldon
I understand that the hon. and learned Member wishes to know the cost of exempting the interest on the first £500 or £5,000 of a child's savings.
I regret that statistics are not available which distinguish the income from children's investments, and it is therefore not possible to derive an estimate of the cost of exempting part of this income. However, the single person's allowance is available to each child, and tax would therefore not be due on any interest received, where total income was less than £945 a year.
§ Mr. Ralph Howell
asked the Chancellor of the Exchequer what would be the loss of revenue if tax rates were altered to start at 15 per cent. on the first £500 of taxable income, and to increase by 5 per cent. on each extra £500 thereafter, with a maximum of (a) 50 per cent. and (b) 60 per cent.
§ Mr. Rooker
asked the Chancellor of the Exchequer if, in order to give more realistic and acceptable examples of future income tax changes, he will base examples of changes on the median earnings of manual men and not average earnings of all men.