§ Mr. Bob Dunnasked the Chancellor of the Exchequer what would be the approximate reduction in revenue if all retirement pensioners, whose income—whether 147W single or joint—was below £5,000 per year, were exempt from direct taxation.
§ Mr. Peter ReesAn estimate relating only to those in receipt of a retirement pension could only be obtained at disportionate cost. The information that is readily available relates to all persons over the age of 65 years who qualify for the age allowances. If these allowances were increased from the amounts enacted by the Finance Act 1979 to £5,000 for both single and married per sons the estimated cost would be about £760 million at 1978–79 income levels and tax rates. The cost for 1979–80 will depend on the income levels in that year and on the tax rates and allowances finally determined for the year.