HC Deb 19 January 1979 vol 960 cc966-7W

Mr. Rooker asked the Chancellor of the Exchequer if he will make a statement showing what the personal tax allowances will be for the year 1979–80 if the changes allowed for in section 22 of the Finance Act 1977 are based on the latest retail price index figure for December 1978; and if he will show the effect of this change for a worker on median earnings and a pensioner paying tax at (a) the lower rate of 25 per cent, and (b) at the standard rate of 33 per cent.

Mr. Robert Sheldon:

If the personal allowances were increased in line with changes in the retail price index between

Tax at 25 per cent. Tax at 33 per cent.
£ £
Single allowance 20.75 27.39
Married allowance 32.25 42.57
Additional personal allowance 11.75 15.51
Age allowance:—
Single 27.50 36.30
Married 43.75 57.75

A worker on median earnings will normally pay tax at the basic rate.