HC Deb 15 June 2004 vol 422 c836W
Mr. Willetts

To ask the Chancellor of the Exchequer what his estimate is of the cost to the Exchequer of allowing married people to transfer their unused income tax allowance to a spouse with a taxable income in respect of families where the child is(a) under one year old, (b) one, (c) two, (d) three, (e) four and (f) five years old. [178857]

Dawn Primarolo

The cost to the exchequer through lower income tax of allowing married persons with children to transfer their full personal allowance to their spouse if he or she has a higher gross income for the options are listed as follows.

Cost in 2004–05 per annum
Option Amount(£ million)
(a) married and with at least one child aged less than one year 320
(b) married and with at least one child aged one year 340
(c) married and with at least one child aged two years 360
(d) married and with at least one child aged three years 350
(e) married and with at least one child aged four years 370
(f) married and with at least one child aged five years 340
Notes:
1. Figures rounded to the nearest £10 million. They exclude any estimate of behavioural response to the tax change.
2. Age of child at last birthday.

The change in revenue for other taxes can be provided only at a disproportionate cost.