§ Mr. MandelsonTo ask the Chancellor of the Exchequer if he will estimate the yield in 1993–94 of restricting all personal allowances and reliefs to the basic rate.
§ Mr. Dorrell[holding answer 12 July 1993] : The estimated full year yield at 1993–94 income levels from restricting all personal allowances and reliefs to the basic
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Number of employees to whom options were granted during year (Thousands) Number of employees who exercised options during year (Thousands) Initial value of shares over which options granted during year (£ million Market value of shares over which options exercised during year (£ million) 1990–91 65 n.a. 1,450 700 1991–92 80 20 1,350 1,100 allowances including personal allowances and reliefs within these limits, to relief at (i) 20p and (ii) 25p, giving in each case the numbers of people affected.
§ Mr. Dorrell[holding answer 9 July 1993] : Estimates of the direct revenue yield in a full year at 1992–93 and 1993–94 levels of income from imposition of the specified limits for allowances and reliefs within the tax system for these years are as follows. These are based on information compiled from a number of statistical surveys and are subject to more than the usual margin of uncertainty, and incorporate the conventional assumption of no changes in mortgage interest rates in 1993–94.
Limit for total allowance and reliefs 1992–93 yield 1993–94 yield £ £ million £ million 10,000 690 650 15,000 380 380 20,000 270 280 After restriction of the allowances and reliefs within these limits to 25 and 20 per cent., the estimated further yield would be as follows:
rate of tax is £2.4 billion. This incorporates the conventional assumption of no changes in mortgage interest rates during 1993–94.
The estimate of revenue yield does not take account of any behavioural effects which might result from the introduction of the changes.