§ Mr. Rookerasked the Chancellor of the Exchequer what is his latest estimate of the revenue costs of disaggregation of income tax without rearrangement and 606W if he will give a separate estimate of the costs with rearrangement showing the costs attributable to pensioner and non pensioner couples.
§ Mr. Moore:[pursuant to his reply, 22 October 1984]: It is not possible to specify a unique figure for the cost of disaggregating incomes of husband and wife since the overall consequences would depend on the form taken by the personal allowances and other reliefs under the new system. On the basis of the recorded distribution of investment income between husband and wife, the overall cost, in 1984–85, of allowing an election for disaggregation, on the lines described in paragraphs 46–50 of the Green Paper "The taxation of husband and wife" (Cmnd. 8093), woud be about £300 million. Of this, about one-third is in respect of taxpayers over the age of 65. An estimate of the cost of the election, after allowing for possible rearrangement of income between husband and wife which might occur in response to the change, could only be attempted at disproportionate cost, and even then could be highly speculative.