§ Mr. LawsTo ask the Chancellor of the Exchequer what his estimate is of the cost of raising the personal income tax allowance to(a) £5,000, (b) £6,000, (c) £7,000 and (d) £7,500 per year; how many people would cease to pay income tax as a consequence; and if he will make a statement. [130560]
§ Dawn PrimaroloThe full-year cost of making these tax changes in 2003–04 are set out in the following table.
Raising the under 65 personal income tax allowance in 2003–04 to Cost (£ billion) Number of people cease to pay income tax (thousand) (a) £5,000 per year 2.4 500 (b) £6,000 per year 8.3 1,800 (c) £7.000 per year 13.9 3,000 (d) £7,500 per year 16.6 3,500 These estimates exclude any behavioural response to the tax change and are based upon the 2000–01 Survey of Personal Incomes and consistent with Budget 2003.
§ Mr. LawsTo ask the Chancellor of the Exchequer what his estimate is of the cost of raising the personal income tax allowance to £10,000 per year for people aged 65 years and over; and if he will make a statement. [130566]
§ Dawn PrimaroloThe estimated full-year cost of raising the personal income tax allowance to £10,000 per year for those age 65–74 and 75 plus in 2003–04 is £2 billion.
This estimate excludes any behavioural response to the tax change and is based upon the 2000–01 Survey of Personal Incomes and consistent with Budget 2003.