§ Mr. Roderickasked the Chancellor of the Exchequer what would be the loss of revenue to the Exchequer if allowances against tax on incomes were raised by £50, £100, £150, £200, £250; and, also, what would be the effect of charging tax at half the standard rate.
§ Mr. Robert SheldonIf the single, married and age allowances were each increased by the amount mentioned the costs for 1975–76 would be as follows:
Increase in allowances Cost £ million 50 375 100 740 150 1,110 200 1,465 250 1,820 The effect for 1975–76 of charging income tax at half the basic rate, assuming 1975–76 tax allowances and with no charge to the higher rates of tax, would be a reduction in revenue of about £6,800 million.