§ Mr. Fieldasked the Chancellor of the Exchequer what is the estimated cost of the granting of each of the personal allowances; and how much of these costs are due to the allowances being claimed at higher rates of tax.
§ Mr. Peter Reesasked At 1979–80 income levels the estimated costs for a full year are:—
Personal allowance Cost* £ million Estimated amount† included by virtue of higher rate £ million Married person 7,050 175 Single person 3,460 70 Wife's earned income 2,050 40 Age allowance 290‡ Nil Additional personal allowance 70 Negligible Child allowance 7 Negligible Blind person's allowance 1 Negligible Dependent relative 25 Negligible Housekeeper 1 Negligible Son's or daughter's service Under 1 Nil * The figure quoted represents the estimated tax yield if each of the allowances is withdrawn separately. They do not include tax which would become due if the allowances were withdrawn from persons not on Inland Revenue records because their incomes are below tax thresholds. † The estimated amount included by virtue of higher rate represents the yield if the relict was restricted to relief at the basic rate. ‡. The figure represents the cost of the amount of age allowance in excess o the ordinary personal allowance.