§ Mr. Hordernasked the Chancellor of the Exchequer if he will estimate the loss to the Revenue in the last fiscal year as a result of the raising of the level of personal allowances, and the bands of higher rate income tax, for those who pay tax at the higher rates.
§ Mr. RidleyIf income tax allowances and thresholds (including the investment income surcharge threshold) had not been increased from their 1981–82 levels, the additional yield of revenue from taxpayers who would then have been liable at higher rates in 1982–83 is estimated at £320 million in 1982–83 and £540 million in a full year, at 1982–83 levels of income.
My right hon. and learned Friend's last Budget provided for increases in allowances and thresholds for 1982–83 above the levels required to index them under the statutory formula. The revenue cost of these increases attributable to higher-rate taxpayers is estimated at £25 million in 1982–83 and £40 million in a full year, at 1982–83 income levels. These costs include those associated with taxpayers who would have been liable at higher rates in 1982–83, if allowances and thresholds had only been indexed under the statutory formula.