Personal Allowances (Hansard, 3 February 1978)

§ Mr. George
asked the Chancellor of the Exchequer (1) by how much the rates of all personal tax allowances since 1974 would have to be raised to be worth the same in real terms as when they were first introduced;
(2) what amount personal tax allowances would have to be raised to be worth in real terms the same as in 1974.
355W

§ Mr. Robert Sheldon
On the basis of the increase in the general index of retail prices between the financial year 1974–75 at the month of December 1977, the information is as follows:

Change required to restore value to 1974–75 level

£

Single personal allowance +91

Married personal allowance -22^*

Single age allowance +92†

Married age allowance -36^*†

^* The real value at December 1977 is greater than in 1974–75.

† The comparison is with the age exemption limit in 1974–75. Age allowances were first introduced in 1975–76: to restore their value to the level in that year would require an increase of £13 in the single allowance and a reduction of £80 in the married allowance.

§ Mr. Wakeham
asked the Chancellor of the Exchequer (1) what would be the cost to the Revenue of giving the higher personal allowance instead of the personal allowance to those single taxpayers who at present are entitled to child relief, dependent relative relief or housekeeper relief;
(2) what is the estimated cost to the Revenue of the dependent relative reliefs and the housekeeper relief.

§ Mr. Robert Sheldon
I will let the hon. Member have a reply as soon as possible.

	Change required to restore value to 1974–75 level
	£
Single personal allowance	+91
Married personal allowance	-22^*
Single age allowance	+92†
Married age allowance	-36^*†
^* The real value at December 1977 is greater than in 1974–75.
† The comparison is with the age exemption limit in 1974–75. Age allowances were first introduced in 1975–76: to restore their value to the level in that year would require an increase of £13 in the single allowance and a reduction of £80 in the married allowance.