Tax Allowances and Reliefs (Hansard, 11 February 1992)

§ Mr. Tom Clarke
To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1992–93, and in a full year, of introducing an upper limit on all income tax allowances and reliefs of(a) £9,000, (b) £10,000, (c) £11,000, (d) £12,000, (e) £13,000, (f) £14,000, (g) £15,000 and (h) £16,000 giving the number of people affected in each case, distinguishing between (i) basic-rate taxpayers and (ii) higher-rate taxpayers, and giving the number who brought into higher rate tax in each case, in the United Kingdom.

§ Mr. Maude
It is estimated that at 1991–92 levels of income the introduction of the upper limits specified would yield the following:

Upper limit for total allowances and reliefs Yield in full year

£ £ million

9,000 930

10,000 590

11,000 440

12,000 360

13,000 310

14,000 270

15,000 240

16,000 210

The number of people who would be affected are as follows: 430W

Upper limit for total allowances and reliefs £ Basic rate taxpayers and non taxpayers (000's) Higher rate taxpayers (000's)

9,000 1,090 555

10,000 250 385

11,000 55 215

12,000 30 135

13,000 20 100

14,000 15 75

15,000 10 65

16,000 10 55

Fewer than 5,000 basic rate taxpayers would become higher rate taxpayers.
The effect on receipts in the first year would depend on the administrative arrangements for applying a limit.
It is not possible to provide detailed estimates for 1992–93.
The estimates do not take account of any behavioural effects which might result from the introduction of such a limit.

§ Mr. Tom Clarke
To ask the Chancellor of the Exchequer what is his estimate of the average tax allowances and reliefs for those with gross incomes(a) under £10,000, (b) between £10,000 and £20,000, (c) between £20,000 and £30,000, (d) between £30,000 and £40,000, (e) between £40,000 and £50,000, (f) between £50,000 and £60,000, (g) between £60,000 and £70,000, (h) between £70,000 and £80,000 and (i) above £80,000.

§ Mr. Maude
Latest estimates for taxpayers in 1991–92 are as follows:

Gross income £ per year Amount of tax reliefs and allowances set against income £

0-10,000 4,200

10,000-20,000 5,900

20,000-30,000 7,000

30,000-40,000 7,800

40,000-50,000 8,400

50,000-60,000 8,900

60,000-70,000 9,500

70,000-80,000 9,900

Over 80,000 13,300

Average 5,500

Upper limit for total allowances and reliefs	Yield in full year
£	£ million
9,000	930
10,000	590
11,000	440
12,000	360
13,000	310
14,000	270
15,000	240
16,000	210

Upper limit for total allowances and reliefs £	Basic rate taxpayers and non taxpayers (000's)	Higher rate taxpayers (000's)
9,000	1,090	555
10,000	250	385
11,000	55	215
12,000	30	135
13,000	20	100
14,000	15	75
15,000	10	65
16,000	10	55

Gross income £ per year	Amount of tax reliefs and allowances set against income £
0-10,000	4,200
10,000-20,000	5,900
20,000-30,000	7,000
30,000-40,000	7,800
40,000-50,000	8,400
50,000-60,000	8,900
60,000-70,000	9,500
70,000-80,000	9,900
Over 80,000	13,300
Average	5,500