§ Sir Brandon Rhys Williamsasked the Chancellor of the Exchequer what is his latest estimate of the increase in the yield of tax if all income tax reliefs and allowances were restricted to the basic rate of tax; and if he will estimate how much this sum represents in terms of reduction in pence in the basic rate of income tax.
§ Mr. MooreThe yield of restricting to the basic rate of tax all personal allowances and the reliefs for mortgage interest, retirement annuity premiums and superannuation contributions is estimated to be about £850 million in a full year at 1984–85 levels of income. This is less than the £1,025 million required to finance a reduction of one penny in the basic rate. I regret that estimates for other reliefs are not available.
Weekly tax liability Joint weekly Earnings: £150 £300 £450 £750 Mortgage: £15,000 £40,000 £60,000 £60,000 £ per week £ per week £ per week £ per week (a) 2 Single people 1 Earner 24.56 60.69 111.42 260.02 2 Earners 13.00 43.21 76.38 166.38 (b) 2 Single people each with 1 child 1 Earner 17.93 54.06 102.46 247.86 2 Earners *-0.27 29.94 63.12 153.12 (c) Married couple 1 Earner 17.93 54.06 102.46 247.86 2 Earners 6.36 42.49 87.49 188.15 (d) Married couple with 2 children 1 Earner 17.93 54.06 102.46 247.86 2 Earners 6.36 42.49 87.49 188.15 * Mortgage interest relief deducted at source exceeds income tax on earnings.