§ Dr. McDonaldasked the Chancellor of the Exchequer what would be the additional income to the Exchequer if (a) all present tax allowances and (b) those tax reliefs for which estimates can be made are set against the standard rate of tax only.
§ Mr. Moore[pursuant to his reply, 9 December 1985, c. 542]: The cost at 1985–86 levels of income of allowing personal tax allowances at rates in excess of the basic rate of income tax is estimated to be about £490 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 £530 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 £1,150 million.