HC Deb 04 April 1978 vol 947 cc111-2W
Mrs. Wise

asked the Chancellor of the Exchequer at what level of joint earned income a married couple become liable for tax at a higher rate band, assuming both are working, that they have only the basic personal allowances and that they (a) have no children under 16 years of age; (b) have two children under 11 years of age and (c) have two children over 11 and under 16 years of age.

Mr. Robert Sheldon

The figures are as follows:

a. Married couple £8,401
b. Married couple with two children under 11 £8,767
c. Married couple with two children over 11 and under 16 £8,837

It is assumed that the wife has earnings of at least £945.

Mrs. Wise

asked the Chancellor of the Exchequer to what levels could the basic tax thresholds be raised for (a) a single person, (b) a married couple with one earned income, (c) a married couple with two earned incomes, (d) a married couple with one earned income and two children over 11 years of age, (e) a married couple with two earned incomes and two children over 11 years of age, assuming that equal increases were made to the single person's allowance, married man's allowance, and wife's earned income allowance, and that £1,900 million were allocated to it.

Mr. Robert Sheldon

Equal increases of £230 could be made in each of the allowances specified, and also in the allowances for aged persons, at a cost of about £1,900 million at 1977–78 income levels.

The tax thresholds for persons under 65 years of age would then be:

£
(a) 1,175
(b) 1,685
(c) 2,860*
(d) 2,121†
(e) 3,296†
*Assuming the wife's earnings exceed £1,175 a year.
† Assuming that each of the children is aged 11 or over but not over 16, and excluding the amounts of any child benefit received.