§ Mr. Ralph Howellasked the Chancellor of the Exchequer what would be the cost to the Exchequer in terms of lost revenue if (a) single and married tax allowances and (b) child tax allowances were raised by 50 per cent.
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§ Mr. Robert SheldonThe estimated cost at 1975–76 income levels of increasing by 50 per cent. the single person's tax allowance, the wife's earned income allowance, the married allowance, the additional personal allowance and the single and married age allowance is about £3,500 million. An increase of 50 per cent. in child tax allowances would cost a further £550 million.
CAPITAL GAINS TAX, ESTATE DUTY AND CAPITAL TRANSFER TAX PAYABLE ON SEVEN ILLUSTRATIVE FARMS (£s) Pre-1974 Regime Post-1974 Regime Lifetime Gift Death lifetime Gift CTT Death Si e of farm (acres) CGT (at 30 per cent.) ED CGT ED (after 45 per cent. relife) CGT (at 30 One owner Owned equally by husband and wife CTT One owner 100 … 300 Nil Nil 9,625 Nil 1,937 325 3,875 150 … 5,625 Nil Nil 18,597 Nil 4,706 1,725 9,412 200 … 10,950 Nil Nil 28,737 Nil 8,225 3,875 16,450 250 … 16,275 Nil Nil 39,222 Nil 12,156 6,437 24,312 300 … 21,600 Nil Nil 50,394 1,395 16,737 9,412 33,000 400 … 32,250 Nil Nil 74,112 4,245 28,725 16,450 47,050 500 … 42,900 Nil Nil 98,175 7,095 43,937 24,312 74,250
Assumptions: (i) Value on disposal in 1975 … … … £625 per acre. Split … … … £520 agricultural property. £105 agricultural assets. (ii) Value 1965 … … … £205 per acre. Split … … … £165 agricultural property. £40 agricultural assets. (iii) Agricultural relief for CTT and CGT equivalent to 50 per cent. of value. Farm has no development value. (iv) CGT—assumed acquired in 1965 at £205 per acre including tenants' assets. Farmer entitled to Retirement Relief up to a maximum of £20,000 throughout. Farmhouse valued at £6,800 in 1965 and at £21,300 in 1975 gain on it exempt (private residence). (v) ED—No other assets. (vi) CTT—No other assets; donee bears tax. Note: If donee bears both CGT and CTT, CTT figures for lifetime gifts will be lower.