§ Mr. Frank Field
asked the Chancellor of the Exchequer what extra revenue would result from allowing all tax allowances, both personal and non-structural, at the standard rate of tax only.
§ Mr. Moore
[pursuant to his reply, 24 April 1986, c. 226]: The cost at 1986–87 levels of income of allowing personal tax allowances at rates in excess of the basic rate of income tax is estimated to be about £600 million. Information on the similar cost of other income tax reliefs 478W is available only in respect of mortgage interest, retirement annuity premiums and employees' superannuation contributions; in total it is also about £600 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 £1,400 million.