§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer, further to his reply dated 19 December 1979 concerning tax relief on life assurance, if he will publish in the Official Report a table showing for each income band (a) the average amount of tax relief, (b) by how much the basic rate of tax band could be raised at a cost of £260 million and (c) what would be the net cost to the average taxpayer in each band if life assurance relief were abolished and the money spent on lifting the threshold of the basic rate band for tax purposes.
§ Mr. Peter Rees
The earlier reply—[Vol. 976, c.210–12]—related to relief in 1978–79.
It is estimated that in 1978–79 income levels and using 1978–79 income tax rates and allowances the tax threshold could be raised by £30 for each taxpayer at a cost of £260 million, being the estimated cost of life assurance relief in that year.
The remaining information requested is as follows:
Income range Average life assurance relief per claimant Average gain or loss to each taxpaying unit if life assurance relief were replaced by an extra personal allowance of £30 £ £ £ Below 2,000 8 +6 2,000-10,000 17 +1 10,000-12,000 46 -15 12,000-16,000 81 -48 16,000-20,000 112 -69 20,000 plus 154 -88