§ Dr. McDonald
asked the Chancellor of the Exchequer what would be the saving if (a) all tax reliefs and (b) personal tax allowances were set against the standard rate of tax only.
§ Mr. Moore
[pursuant to his reply, 29 November 1984, c. 579]: The cost at 1984–85 levels of income of allowing personal tax allowances at rates in excess of the basic rates of income tax is estimated at about £380 million. Information on the similar cost of other income tax reliefs is available only in respect of mortgage interest, retirement annuity premiums and employees' superannuation contributions; in total it is about £400 million. It is not possible to estimate precisely the combined yield from restricting these reliefs and personal allowances to the basic rate, but it is thought to be about £900 million.