§ Mr. Rooker
asked the Chancellor of the Exchequer if he will set kit the details of all personal income tax allowances for 1982–83 on the assumption of the indexation provisions of the Finance Act 1977 as amended by the Finance Act 1980, showing the estimated cost for each allowance and basing his answer on (a) the retail price index change in 1981 and (b) the retail price index change in 1980 and 1981.
§ Mr. Ridley
[pursuant to his reply, 5 Febuary 1982, c. 234]: The allowances and full-year costs, at 1981–82 income levels, of the increases over existing allowances would be as follows:325W
(a) Based on change in the RPI between (b) Based on change December 1980 and December 1981 in the RPI between December 1979 and December 1981 Level Cost Level Cost £ £million £ £ million Single and wife's earned income allowance 1,545 680 1,775 1,560 Married mans' allowance 2,405 880 2,775 2,110 Additional personal allowance 860 10 1,000 20 Aged single allowance 2,040 70 2,350 160 Aged married allowance 3,245 90 3,735 180 Aged income limit 6,700 30 7,700 60 Total cost 1,760 4,090
In estimating the costs, it is assumed that the changes are introduced in the order in which items are listed-for example, £30 million in column (a) is the cost of increasing the aged income limit on top of the new allowance levels. The Finance Act 1980 also provides for the indexation of the thresholds for the higher rate of tax and the investment income surcharge. The allowances above have been rounded up, where necessary, as required by the statutory indexation provisions.