HC Deb 25 February 1993 vol 219 cc686-7W
Mr. Dewar

To ask the Chancellor of the Exchequer if he will update the information given in tables 5.2, 5.3, 5.4, 5.5, 5.6, 5.7 and 5.8 of the autumn statement 1992 on the basis of the December retail prices index.

Mr. Dorrell

Updated figures for 1993–94 on the basis of an indexation factor of 2.6 per cent. are given in the tables. Tables 5.6 and 5.8 showing illustrative changes in taxes are unaffected by the change in the indexation factor. A correction to the figures published in table 5.6 of the "Autumn Statement" was given in answer to my hon. Friend the Member for Chelmsford (Mr. Burns) on 16 February 1993,Official Report, column 122.

Table 5—Income Tax
1992–93 £ 1993–94 £
Personal allowance 3,445 3,535
Personal allowance (age 65 to 74) 4,200 4,310
Personal allowance (age 75 and over) 4,370 4,490
Married couple's allowance 1,720 1,770
Married couple's allowance (age 65 to 74) 2,465 2,535
Married couple's allowance (age 75 and over) 2,505 2,575
Additional personal1 and widow's bereavement allowance 1,720 1,770
Aged income limit2 14,200 14,600
Lower rate band 2,000 2,100
Basic rate limit3 23,700 24,400
1 Primarily for single parents.
2 If the total income, less allowable deductions, of a taxpayer aged 65 or over exceeds this limit, the age-related allowances are reduced by £1 for each additional £2 of income until the basic levels of the personal and married couple's allowances are reached.
3 Higher rate income tax is payable on income (less allowances and those reliefs which are allowed at the higher rate) in excess of the basic rate limit.

Table 5.3—Inheritance tax
1992–93 £'000 1993–94 £'000
Threshold 150 154

Table 5—Capital gains tax
1992–93 £ 19993–94 £
Annual exempt amount:
Individuals 5,800 6,000
Trusts 2,900 3,000

Table 5.5—Costs of indexation for 1993–94
1993–94

£ million

1994–95

£ million

Indexation of income tax allowances lower rate band and basic rate limit1 750 1,000
Of which:
Increases in allowances 560 720
Increase in lower rate band2 80 100
Increase in the basic rate limit2 110 180

Table 5
Direct Effects of Revalorising all Excise Duties1
£ million yield2 Typical item Current level of duty on typical items Price change3
1993–94 1994–95
Total4 600 675 0.19 per cent.
Of which:
Beer and cider 55 70 Pint of beer 23.3p 0.7p
Wine 10 15 75 cl bottle of table wine 94.5p 2.9p
Spirits 20 20 70 cl bottle £5.55 17.1p
Tobacco6 130 150 20 king size £1 36 3.6p
Petrol 215 240 Litre of unleaded 23.4p 0.7p
Derv 70 70 Litre 22.9p 0.7p
VED7 80 85 Cars and light vans £110.00 £2.86
1 These are estimated on the assumption that total consumers1 expenditure at factor cost does not change.
2 Assuming implementation on 1 April 1993.
3 The price change is assumed to equal the change in duty plus the consequential change in VAT except in the case of VED where VAT is not payable. The price change is for the typical item described above the rounded to the nearest one-tenth of a pence.
4 Includes receipts from tax on items not listed below.
5 Impact effect on the RPI.
6 The duty on cigarettes has ad valorem and specific elements; revalorisation and the illustrative percentage change relate only to the specific element, but the price change includes the consequential increase in ad valorem duty and VAT.
7 All VED, including HGVs as well as cars and light vans.

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