§ Sir Brandon Rhys Williams
asked the Chancellor of the Exchequer what is his latest estimate of the tax expenditure savings if (a) the personal tax allowances and (b) all tax allowances and reliefs were converted to fixed amount tax deductions based on the value of current allowances to standard rate taxpayers.
§ Mr. Ridley
(a) The yield in a full year at 1982–83 income levels from restricting all personal allowances to the basic rate is estimated at about £325 million.
(b) Information is available only in respect of three major reliefs—mortgage interest, retirement annuity premiums, and superannuation contributions. It is not possible to estimate precisely the combined effect of restricting these reliefs and personal allowances to the basic rate, but it is thought that the yield could be in the region of £700 million.