HC Deb 05 May 1998 vol 311 cc336-7W
Mr. Amess

To ask the Chancellor of the Exchequer by what amount the real value of the over 65 married couples allowance will have changed between 1990–91 and(a) 1998–99 and (b) 1999–2000 taking account of the reduction in the rate at which the allowance is given and assuming that the allowance is increased in 1999–2000 in line with inflation and that it is increased to protect its real value to pensioners, when the rate at which the allowance is given is reduced. [40161]

Dawn Primarolo

The information is given in the tables. These compare the level of the 1990–91 revalorised married couple's allowance against the actual level in 1998–99 and 1999–2000. It is assumed that allowances in 1999–2000 are indexed in line with an illustrative assumption of 3¼ per cent. given in the Financial Statement and Budget Report, March 1998.

Married couple's allowance (aged 65–74)
£
1998–99 1999–2000
1990–91 revalorised level 2,885 2,985
Actual level 3,305 5,135

£
1998–99 1999–2000
1990–91 revalorised value1
Lower rate taxpayer 577 597
Basic rate taxpayer 664 687
Higher rate taxpayer 1,154 1,194
Actual value2 496 513
Reduction in value
Lower rate taxpayer 81 84
Basic rate taxpayer 168 174
Higher rate taxpayer 658 681
1MCA given at marginal rates.
2MCA given at 15 per cent. in 1998–99 and 10 per cent. in 1999–2000.

Married couple's allowance (aged 75 and over)
£
1998–99 1999–2000
1990–91 revalorised level 2,935 3,035
Actual level 3,345 5,195

£
1998–99 1999–2000
1990–91 revalorised value1
Lower rate taxpayer 587 607
Basic rate taxpayer 675 698
Higher rate taxpayer 1,174 1,214
Actual value2 502 519
Reduction in value
Lower rate taxpayer 85 88
Basic rate taxpayer 173 179
Higher rate taxpayer 672 695
1MCA given at marginal rates.
2MCA given at 15 per cent. in 1998–99 and 10 per cent. in 1999–2000.