§ Mr. McGuireasked the Chancellor of the Exchequer if he will give details of the number of people who benefit from the income tax age allowance; what are the qualifying conditions of the allowance and when it was introduced.
§ Mr. RidleyAt least 2½ million single people or married couples benefit from the age allowance. This figure does not include an unknown but possibly large number of people who are kept out of tax by the allowance and are not on the Inland Revenue's records. The relief is given to taxpayers aged 65 or over whose incomes are below an income limit—at present £5,900. In the case of a married couple, the allowance is given when either the husband or the wife is 65 or over. For incomes above £5,900 the allowance is tapered, and reduced by £2 for every £3 of income until it is the same as the ordinary single or married allowance. The allowance was introduced in 1975 when it replaced the long-standing age exemption. The reasons given for the change were that the relief in its new form would benefit a large number of elderly people and would avoid the complication and confusion the age exemption rules produced.