HC Deb 23 February 1976 vol 906 cc65-6W
Mr. Hordern

asked the Chancellor of the Exchequer what would be the cost to the Exchequer of raising personal allowances by £200 each.

Mr. Robert Sheldon

At 1975–76 income levels the estimate full-year cost of increasing the single, married and wives' earnings allowances by £200 each would be about £1,650 million.

expense under the rules of Schedule E, nor is it an admissible deduction in computing the profit of a trade, profession or vocation.

Mrs. Wise

asked the Chancellor of the Exchequer how much tax is lost through firms paying the cost of BUPA and similar medical insurance arrangements for private treatment for their staffs and setting the cost off against profit.

Mr. Robert Sheldon

The cost of medical insurance for employees, like expenditure on any other welfare benefit provided by an employer, is allowable for tax under the normal rules. Information on which to base a precise figure is not available, but it is estimated that for 1974–75 the cost of allowing such insurance was about £10 million. Section 35, Finance (No. 2) Act 1975, provided that from 1976–77 onwards the cost of provision of such insurance for any person by reason of his office or employment should be assessable on him as a benefit. It is estimated that for 1976–77 the total yield from the taxation of these benefits is likely to be between £5 million and £10 million.