HC Deb 11 March 1980 vol 980 cc540-1W
Mr. Ralph Howell

asked the Chancellor of the Exchequer what would be the cost at 1979–80 income levels of abolishing all existing tax allowances, and replacing them with a uniform adult tax allowance of £1,500, which married couples could aggregate against the income of either spouse, but which would be subject to a restriction similar to that which applies to the age allowance, with upper limits of £5,000 for married couples and of £2,500 for single people.

Mr. Peter Rees

I regret that I do not fully understand my hon. Friend's question. The estimated cost of replacing the existing allowances by a uniform allowance of £1,500 per adult is about £2,900 million. The income limit for the age allowance involves a tapering reduction in the allowance above the income level specified until the advantage of the extra allowance is withdrawn and the allowance due becomes the same as for persons under 65. The question does not specify to what amount the uniform allowance should be reduced if income limits similar to that for the age allowance were imposed.