HC Deb 13 February 1976 vol 905 cc405-6W
Mr. Stanley

asked the Chancellor of the Exchequer what was the average amount of VAT paid per household in 1973–74, 1974–75 and estimated for 1975–76.

Mr. Robert Sheldon

It is estimated that the average amounts of VAT paid per household in 1973–74 and 1974–75 were about £110 and £140 respectively. The estimate for 1975–76 is £175.

Sir B. Rhys Williams

asked the Chancellor of the Exchequer if he will publish a table showing the net value of family allowances, after payment of income tax for families with up to four children over a standard range of weekly earned incomes up to £200 per week, including the current level of average weekly earnings.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 10th February 1976; Vol. 905, c. 131], gave the following information:

Assuming that the children are not over 11 years of age, the figures for 1975–76 are as follows:

NET VALUE OF FAMILY ALLOWANCE FOR A MARRIED COUPLE WITH:
Income* £ 2 children £ 3 children £ 4 children £
1,300 78.00 156.00 234.00
1,400 72.05 156.00 234.00
1,500 37.05 156.00 234.00
1,600 32.50 145.85 234.00
1,700 32.50 110.85 234.00
1,800 32.50 75.85 219.65
1,900 32–50 65.00 184.65
2,000 32.50 65.00 149.65
2,500 32.50 65.00 97.50
3,000 32.50 65.00 97.50
3,480† 32.50 65.00 97.50
4,000 32.50 65.00 97.50
5,000 32.50 65.00 97.50
6,000 26–65 65.00 97.50
7,000 19.50 39.00 65.95
8,000 13.00 26.00 46.45
9,000 6.50 13.00 26.95
10,000‡ 7.45
10,400

Notes:

* The income figures shown include family allowance and clawback has been taken into account in the tax calculations.

† The income figure of £3,480 is equivalent to estimated average earnings at November 1975 of full-time adult males, manual and non-manual, in all industries, obtained by applying the November 1975 index of average earnings to the New Earnings Survey estimate of average earnings for April 1975.

‡ In the taxable income range £8,000–£10,000 the net value of the family allowance is zero. At higher incomes it is to the taxpayer's advantage to forgo the allowance.