HC Deb 17 February 1976 vol 905 c609W
Mr. Gwilym Roberts

asked the Chancellor of the Exchequer what would be the loss in revenue if personal allowances against income tax were increased by 20 per cent.; what estimate is available for the number of people who would be taken out of taxation thereby; at what percentage wealth tax would have to be imposed on accumulated wealth of £100,000 or over to recover this sum; and if he will make a statement.

Mr. Robert Sheldon

The estimated cost at 1975–76 income levels of a 20 per cent. increase in the married and single personal allowances, including the wife's earned income allowance, is £1,350 million. Some 590,000 taxpayers—counting married couples as one—would be taken below the tax threshold. Estimates of the distribution of identified personal wealth for 1975 are not yet available but on the basis of provisional estimates for 1974 it would require a flat rate of about 10 per cent. on personal wealth of £100,000 or over and on wealth held in trust to yield £1,350 million in a full year.