§ Lord VAIZEYasked Her Majesty's Government:
Whether they will list the loss of revenue resulting from the granting of relief on: (1) fees to professional bodies; and (2) work expenses, for 1945, 1950, 1970 and all subsequent years and whether they will also present the loss in revenue as between standard rate and higher rate taxpayers for each of these years.
§ The MINISTER of STATE, PRIVY COUNCIL OFFICE (Baroness Birk)Information is available from the annual survey of personal incomes for the amount of expenses claimed against Schedule E tax. These consist of fees to professional bodies and work expenses, but no breakdown between the two is available. There was no survey in 1945 and the survey for 1949–50 is the nearest to 1950. The most recent survey is for 1976–77. The estimates for later years given below are projections and are approximate.
The calculation of the value of the relief against tax can currently be made only since 1973–74. In the following table the loss of revenue resulting from the relief is given both in total and for the higher rate element (in excess of the basic rate).
Year Total Sched E expenses Cost of relief Saving if relief allowed only at basic rate £m 1949–50 100 1970–71 220 1971–72 215 1972–73 215 1973–74 240 80 15 1974–75 275 110 20 1975–76 295 130 30 1976–77 385 180 50 1977–78 (est) 420 190 50 1978–79 (est) 480 185 45