§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer whether he will publish in the Official Report an estimate of the yield from income tax in the current financial year from persons of pensionable age together with an estimate of the cost to the Exchequer, of replacing the age allowance and clawback with a personal allowance of £2,000 and a reduced rate of £2,000 at 15 per cent. for a single person and a personal allowance of £5,000 and a reduced rate of £3,000 at 15 per cent. for a married couple; and if he will add a table showing the estimated number of incomes by range of total income distinguishing between single persons, married couples without wife's earned income, and married couples with such income.
§ Mr. Norman Lamont
The tax liability of taxpayers over 65 in respect of income in 1986–87 is estimated to be about £4.5 billion. The cost of the tax regime proposed would be about £0.5 billion. The lastest estimate of the distribution of the incomes for income tax purposes of single people and married couples aged over 65 is shown below. Since the information is based on Inland Revenue records the table does not include some 3 million single people and married couples with incomes below the tax threshold for whom records are not kept.
Distribution of total income, 1986–87 For single People and Married Couples over 65 Single people Married couples without wifes's earned income Married couples with wife's earned income Range of total income (lower limit) (£pa) Number of incomes (millions) Number of incomes (millions) Number of incomes (millions) 2,000 .41 .04 .01 3,000 .40 .15 .04 4,000 .24 .25 .08 5,000 .17 .19 .09 6,000 .11 .11 .06 7,000 .11 .09 .07 8,000 .04 .06 .08 9,000 .05 .03 .05 10,000 .06 .03 .07 12,000 .05 .04 .08 15,000 .05 .04 .07 20,000 .03 .03 .06 30,000 .01 .02 .02 50,000 .004 .006 .006
§ Mr. Lawler
asked the Chancellor of the Exchequer if he will estimate the number of single people and married 671W couples who would be below the income tax threshold if transferable tax allowances of £3,000 per person were introduced.
§ Mr. Norman Lamont
I regret that it has not been possible to provide an answer before the summer recess. I shall write to my hon. Friend and place a copy of the letter in the Library.