§ Mr. Heathcoat-Amory
asked the Chancellor of the Exchequer what was the income tax threshold for a two-child family as a percentage of average earnings for the years 1982, 1983 and 1984.
§ Mr. Moore
The table shows the tax threshold and the break-even point — defined as the level of income at which receipt of child benefit equals liability to income tax — for a married man with two children and no tax allowances or reliefs other than the married man's allowance.
Income tax threshold Break-even point £ as percentage of average earnings £ as percentage of average earnings 1982–83 2,445 29.9 4,341 53.0 1983–84 2,795 31.4 4,905 55.2 1984–85 3,155 33.0 5,453 57.1
Average earnings are for full-time men, paid at adult rates, in all occupations and assume an increase of 7½ per cent. between 1983–84 and 1984–85, in line with the underlying rate of increase assumed by the Government Actuary.