§ Mr. David Priceasked the Chancellor of the Exchequer what are his estimates of the cost to the Revenue in 1979–80 and in a full year of raising the personal allowance for income tax from £1,340 for single persons and from £1,675 to £1,745 for married persons.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 24 May 1979; Vol 967, c. 195], gave the following answer:
The costs for 1979–80 will depend on the income for the current year as well as the rates and allowances finally determined for 1979–80. At 1978–79 income levels and rates of tax the estimated cost of the increases, in excess of the cost of the allowances enacted by the Finance Act 1979, would be about £990 million in the first year and about £1,175 million in a full year.
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§ Mr. David Priceasked the Chancellor of the Exchequer what are his estimates of the cost to the Revenue in 1979–80 and in a full year of merging the personal allowances for single and married persons into a single rate for all persons of £1,075, £1,200, £1,250, £1,300 and £1,400, respectively.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 24 May 1979; Vol. 967, c. 195], gave the following answer:
The cost will depend on the level of incomes for 1979–80 and the tax rates finally determined for that year. At 1978–79 income levels and in comparison with the allowances set in the Finance Act 1979 the estimated costs in the year and for a full year are shown below. It has been assumed that for a married couple the two personal allowances are transferable between husband and wife. For persons over 65 allowances of 1.32 times the allowances quoted have been taken, this being the current relativity between the single allowances for those over and under 65.
Proposed value Cost in 1978–79 Full year 1978–79 income levels £ million £ million £1,075 10 10 £1,200 1,050 1,300 £1,250 1,450 1,800 £1,300 1,850 2,300 £1,350 2,250 2,800 £1,400 2,600 3,250
§ Mr. Ralph Howellasked the Chancellor of the Exchequer what would be the costs of raising a single person's tax allowance to £1,350, and a married person's tax allowance to £1,900.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 21 May 1979; Vol. 967, c. 44], gave the following answer:
The costs for the current year will depend on the level of incomes for 1978–80 and on the allowances and rates of tax finally determined for the year. At 1978–79 income levels and rates of tax the estimated full year cost of the increased allowances in excess of the values enacted by Finance Act 1979 is about £1,825 million.