§ Mr. Rooker
asked the Chancellor of the Exchequer if, after making allowances for rounding of figures to suit Inland Revenue procedures, he will state what the main personal tax allowances for 1978–79 would be if the indexation provision of the Finance Act 1977 was implemented based on (a) the Finance Act 1977 and (b) the Finance (Income Tax Reliefs) Act 1977, giving the costs in each case.
§ Mr. Robert Sheldon,
pursuant to his reply [Official Report, 21st February 1978; Vol. 944, c. 620,], gave the following information:
The allowances based on the Finance Act 1977 would be as follows:
£ Single person and wife's earned income 945 Married Person 1,445 Age—Single Person 1,250 Age—Married Person 1,965
Since there would be no increase in allowances for 1978–79 over those for 1977–78 granted in the Finance (Income Tax Reliefs) Act 1977, there would be no cost. Section 2(2) of the Finance (Income Tax Reliefs) Act 1977 precludes the application of the indexation provision to the allowances as increased by that Act, but if it were to be applied to them the allowances would be as follows:
£ Single person and wife's earned income 1,055 Married Person 1,615 Age—Single Person 1,390 Age—Married Person 2,195
The cost would be about £1,160 million at 1977–78 income levels.