§ Mr. Gregoryasked the Chancellor of the Exchequer (1) how much income tax yield was forgone as a result of private health insurance tax offset allowance in the 1982–83 and 1983–84 tax years; and if he will give an estimate for 1984–85;
(2) if he will estimate income tax yields in 1985–86 if the private health insurance tax allowance (a) remains at its present level, (b) is index-linked, (c) is increased by 50 per cent. and (d) is increased by 100 per cent.
§ Mr. Moore[pursuant to his replies, 21 February 1985, c. 571]: I assume that my hon. Friend is referring to the £8,500 earnings threshold below which employees are not generally taxable on benefits in kind provided by reason of their employment. These rules have applied since 1982–83 to private health care insurance. The revenue cost in respect of employees below the limit is estimated at £4 million for 1982–83 and £5 million for 1983–84 and 1984–85.
Income tax is chargeable on the benefit of medical insurance provided by the employer for directors and those employees above the threshold. For 1985–86 the yield, corresponding to various levels of the earnings threshold is estimated as follows:
(a) (b) (c) (d) Earnings threshold (£ per year) 8,500 8,900 12,750 17,000 Yield (£ million) 20 20 17 14
Central Government Grants and Subsidies to Nottinghamshire County Council and Nottingham City Council £ million (cash) 1979–80 1980–81 1981–82 1982–83 1983–84 1984–85 1985–86 Nottinghamshire County Council Rate support grants* 90.6 108.3 171.7 161.3 153.2 167.7 168.9 Specific grants† 26.3 31.4 37.0 38.7 44.9 — — Transport supplementary grant‡ 1.1 0.3 1.0 3.0 2.6 2.7 — Capital grants 0.5 3.0 1.9 0.7 1.6 — — Total 118.5 143.0 211.6 203.7 202.3 — — Nottingham City Council Rate support grant* 16.8 18.5 11.2 11.7 13.4 13.1 15.4 Specific grants† 3.9 4.1 4.1 5.1 10.9 — — Rent and rate rebates and housing benefit‡¶ 3.8 4.4 5.2 11.7 30.7 33.2 — Housing subsidy‡ 11.3 12.8 5.2 — — — — Capital grants║ 1.1 2.2 5.4 4.4 2.5 — — Total 36.9 42.0 31.1 32.9 57.5 — — Notes: * The rate support grant system changed in 1981–82. Figures for earlier years are not on a comparable basis. The figures for 1979–80 and 1980–81 include the needs and resources elements for the county council, and additionally the domestic element for the city council. Thereafter they cover block grant for both councils and additionally domestic rate relief grant for the city council. The figures up to 1981–82 are final entitlements. Those for 1982–83 to 1984–85 are latest estimates after holdback. The figures for 1985–86 are estimates assuming that the authorities spend at target. † Grants under the urban programme and derelict land grant are included in these figures which are derived from the authorities' outturn data. Estimates are not available for 1984–85 and 1985–86. ‡ Estimates are not available for 1985–86. ║ Estimates are not available for 1984–85 or 1985–86. ¶ The figures for 1979–80 to 1981–82 cover rent and rate rebates grants paid by the DOE. In 1982–83 some payments of rent and rate rebates grants were also made by the DHSS. The figures for 1983–84 and 1984–85 cover housing benefits grants paid by DHSS and are provisional.