§ Mr. Goodladasked the Chancellor of the Exchequer if he will estimate the cost to the Exchequer of allowing rates against (a) personal earned income, (b) all personal income, and (c) all personal and commercial income.
§ Mr. Robert SheldonThe total of rates levied in Great Britain for 1977–78 is expected to be somewhere about £5,100 million, of which about £2,000 million refers to domestic rates. There is no reliable estimate of how this amount is allocated between those liable to pay income tax and those with small increases who are non-liable, so that the cost of an allowance for income tax cannot be estimated precisely.
Rates are allowable expenses in computing profits. The cost of an allowance against income tax for the domestic rate at the basic rate of tax would not exceed some £650 million, which is calculated as if all those paying domestic rates were also liable to pay income tax.
§ Mr. McCrindleasked the Chancellor of the Exchequer, if he will estimate the cost 73W of allowing rates against income tax at the basic rate.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th February 1978; Vol. 944, c. 158], gave the following answer:
I refer the hon. Member to the reply that I gave to the hon. Member for Northwich (Mr. Goodlad) earlier today.