§ Mr. Fieldasked the Chancellor of the Exchequer if he will express the changes in money and real terms of the tax-free income of (a) single person, (b) married couple, (c) married couple plus one child, (d) married couple plus two children and (e) married couple plus four children each year since 1974 taking 1974 to equal 100.
§ Mr. Peter ReesThe figures are as in the following table.
The price index used is the General Index of Retail Prices (all items), aver aged over the financial years shown, except for 1979–80 where the index for October (the middle of the year) has been used.
451W452W453W
Tax Thresholds 1974–75=100 Single Married Married 1 child aged under 11 Married 2 children aged under 11 Married 4 children: 2 aged under 11, 211–16 Year Money terms At 1974–75 prices Money terms At 1974–75 prices Money terms At 1974–75 prices Money terms At 1974–75 prices Money terms At 1974–75 prices 1974–75 … … … 100 100 100 100 100 100 100 100 100 100 1975–76 … … … 108 87 110 89 108 87 107 86 105 84 1976–77 … … … 118 82 125 87 125 87 126 88 126 88 1977–78 … … … 151 92 168 103 154 94 151 92 145 88 1978–79 … … … 158 89 177 100 160 90 155 87 146 82 1979–80 … … … 186 90 210 101 183 88 173 83 152 73 The thresholds represent the amount of income—including family allowances and tax-free child benefit—that can be received before tax is payable. The figures take account of the family allowance deduction—"clawback"—where appropriate.
§ Mr. Meacherasked the Chancellor of the Exchequer, for a married man with two children aged 12 and 9 years, what is his net income, given a gross annual salary of, respectively, £3,000, £5,000, £8,000, £12,000, £17,000 and £25,000, first after taking account of personal tax reliefs, and, secondly, after also taking account of non-personal reliefs which are approximately average for his gross income level.
§ Mr. Peter Rees[pursuant to his reply, 17 December 1979, c. 58]: The figures are as follows:
Net incomes (including child benefit) Gross annual salary Taking account of personal allowances Taking account of all allowances £ £ £3,000 … 2,903 3,115 £5,000 … 4,173 4,446 £8,000 … 6,142 6,494 £12,000 … 8,923 9,448 £17,000 … 11,755 12,817 £25,000 … 15,595 17,335 Net income is gross salary plus child benefit minus tax and national insurance at the not-contracted-out rate.
In the second column of net income it is assumed that the man qualifies for mortgage interest relief and for relief on superannuation contributions. The figures therefore take account of an estimate of average mortgage interest relief in 1979–80 and superannuation contributions of 5 per cent. of salary, in addition to the married allowance. The estimate of mortgage interest relief is based on the average around the income levels shown for all married couples claiming mortgage interest relief.