§ Mr. David ShawTo ask the Chancellor of the Exchequer what would be the approximate cost to the Exchequer in a full tax year of introducing a quoted company individual share ownership allowance on the first(a) £1,000, (b) £2,000 and (c) £5,000 of taxable income if (i) 50 per cent., (ii) 75 per cent. and (iii) 100 per cent. of taxpayers with sufficient taxable income used such an allowance to invest in new shares in quoted companies; and how much finance would be available to quoted companies as a result.
§ Mr. MaudeOn the stated assumptions, estimates relating to 1990–91 are as follows:
Cost of income tax relief £ billion Percentage take-up Tax allowance £ 50 per cent. 75 per cent. 100 per cent. 1,000 3.1 4.6 6.2 2,000 5.6 8.4 11.2 5,000 9.9 14.9 19.8
Amount of investment £ billion Percentage take-up Tax allowance £ 50 per cent. 75 per cent. 100 per cent. 1,000 11.9 17.9 23.8 2,000 21.4 32.1 42.8 5,000 37.3 55.9 74.5