§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate the 222W loss in revenue which would occur in 1976–77 if the remainder of taxable income above £7,000 were levied at 55 per cent.
§ Mr. Robert SheldonThe cost for 1976–77 in excess of the cost of the Budget proposals would be about £320 million.
§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate the loss in revenue which would occur in 1976–77 if the remainder of taxable income above £8,000 were levied at 60 per cent.
§ Mr. Robert SheldonThe cost for 1976–77 in excess of the Budget proposals would be about £225 million.
§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate the loss of revenue which would be occasioned in 1976–77 if the first £500 of taxable income were charged at a tax rate of 25 per cent.
§ Mr. Robert SheldonThe cost for 1976–77 in excess of the cost of the Budget proposals would be about £1,100 million.
§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate the loss of revenue which would be occasioned in 1976–77 if the first £500 of taxable income were charged at a tax rate of 20 per cent.
§ Mr. Robert SheldonAssuming implementation of the conditional and unconditional proposals in the Budget, the additional cost for 1976–77 would be about £1,650 million.
§ Mr. Geoffrey Finsbergasked the Chancellor of the Exchequer if he will publish in the Official Report a table showing, for a single man, a husband and wife with no children and a married couple with two children, respectively, with an income of £3,000, £4,000 and £6,000 per annum, respectively, the maximum increase in income he can expect as a result of the additional tax relief proposed and the amounts of extra tax he will have to pay, assuming a private medical insurance of £100 per annum paid by his employer and the provision of a 2,000 cc car by his employer.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 12th May 1976; 223W Vol. 911, c. 182–3], gave the following information:
The figures are as follows:
Income Value of tax reliefs at highest marginal tax rate Additional tax on medical insurance at highest marginal rate Tax on car benefit at highest marginal rate* £ £ £ Single person £3,000 21.00 35.00 — £4,000 21.00 35.00 — £6,000 65.25 40.00 209.25 Married couple £3,000 45.50 35.00 — £4,000 45.50 35.00 — £6,000 75.00 35.75 192.00 Married couple, 2 children not over 11 £3,000 87.50 35.00 — £4,000 87.50 35.00 — £6,000 93.35 35.00 168.00 * Tax on the cash equivalent of the car benefit has been calculated at 1976–77 tax rates and allowances although the new legislation does not take effect until next year and the scales will not be brought fully into force until 1978–79. The figures given are the total tax payable in respect of the car benefit, not the extra tax, as the amount of tax presently paid is variable.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer what would be the loss of revenue if the tax thresholds, as proposed in the Budget: (a) if agreement is reached, and (b) if agreement is not reached, were raised to family income supplement levels.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 7th May 1976; Vol 911, c. 282–3], gave the following information:
To equate tax thresholds with the corresponding family income supplement levels operative in 1976–77 would require varying increases in thresholds depending on the number of children.
Under (a) a further increase in single and married personal allowances of £520 above those proposed in the Budget would ensure that all families had thresholds at least as large as the corresponding FIS level. The estimated additional revenue cost in 1976–77 would be about £3,600 million.
For (b) the corresponding figures would be £650 million and about £4,500 million.