§ Mr. Lawsonasked the Chancellor of the Exchequer if he will estimate the revenue cost, additional to the cost of proposals already made in the Budget, of applying investment income surcharge at a flat rate of 10 per cent. to investment income exceeding £2,000 for those below 591W retirement age and £3,000 for those over retirement age.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 21st April 1978; Vol. 948, c. 386], gave the following information:
About £120 million at 1978–79 income levels, if retirement age is taken as 65. I regret that an estimate cannot be made on any other basis.
§ Mr. Lawsonasked the Chancellor of the Exchequer if he will estimate the revenue cost, additional to the cost of proposals already made in the Budget, of applying investment income surcharge at a flat rate of 10 per cent. on investment income in excess of (a) £4,000, (b) £6,000 and (c) £8,000 with a nil rate below those figures.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 21st April 1978; Vol. 948, c. 385–6], gave the following information:
The figures based on 1978–79 income levels are as follows:
£ million a. 175 b. 215 c. 240
Weekly tax threshold plus child benefit Family Income Supplement entitlement level Supplementary Benefits plus average allowance for rent and rates £ £ £ Single person … … … … … 18.94 — 22.80 Married couple … … … … 29.52 — 32.50 Married couple with one child aged 13 … 35.12 43.80 41.45 Married couple with two children aged 10 and 13 … … … … … 40.04 47.80 47.15 Married couple with three children aged 10, 13 and 15 … … … … … 45.63 51.80 55.10 The tax threshold is the amount of weekly income which can be received before tax is chargeable and includes the child benefit payable from November 1978.
The family income supplement entitlement level is the current amount.
The supplementary benefits are the amounts provisionally expected to become payable in November 1978 and are short-term scale rates. The figure for rent and rates is the average of housing costs for a local authority residence.
592WThe rates stated have been taken to apply irrespective of age.