§ Mr. CongdonTo ask the Chancellor of the Exchequer what would be the estimated cost to the Exchequer in a full year of allowing husbands and wives with insufficient income to absorb their personal allowance of £3,445 to transfer the unused balance of this allowance to their partner, assuming that the transferred allowance(a) may be claimed at the earning spouses' highest rate and (b) is restricted to the 25 per cent. rate.
§ Mr. DorrellThe Exchequer cost in a full year at 1994–95 income levels is estimated to be about £3 billion if the transferred allowance were available at the recipient's marginal rate of tax and £2¾ billion if the transferred allowances were not available at the higher rate. This estimate does not take into account any behavioural changes which could result from such a measure.