HC Deb 11 June 1979 vol 968 cc133-4W
Mr. Rooker

asked the Chancellor of the Exchequer what would be the reduction in revenue if the widow's allowance was excluded from taxable income.

Mr. Peter Rees

The cost of exempting from income tax the widow's allowance, including the earnings related supplement, is not known precisely but could be of the order of £10 million in a full year at 1978–79 income levels.

Mr. Marlow

asked the Chancellor of the Exchequer what would be the cost to the Exchequer of reviewing widows' pensions and widows' allowances for income tax purposes.

Mr. Peter Rees

About £90 million in a full year at 1978–79 income levels. This represents the tax yield from national insurance widows' pensions and retirement pensions paid to widows under 65 and from widows' allowances.