HC Deb 11 March 1980 vol 980 cc544-6W
Mr. Field

asked the Chancellor of the Exchequer if he will update the information on income tax given to the hon. Member for Birmingham, Perry Barr (Mr. Rooker), Official Report, 27 January 1978, column 760.

Mr. Peter Rees

Allowing tax relief at a rate no higher than the basic rate would yield about £175 million in respect of personal allowances, and £100 million in respect of mortgage interest in a full year at 1979–80 income levels.

Mr. Ralph Howell

asked the Chancellor of the Exchequer how many people paid income tax in 1950, 1960, 1970 and 1975; and what is the estimated number for 1979–80.

Mr. Peter Rees

The numbers liable to income tax are as follows:

Year Total with married couples counted as one Total with earning wives counted separately
'000 '000
1951–52 (figures are not available for 1950–51) 16,200 N.A.
1960–61 19,200 N.A.
1970–71 20,000 23,100
1975–76 20,900 25,400
1979–80* 21,400 26,000
* Estimated.
N.A.—Not available.

Mr. Richard Wainwright

asked the Chancellor of the Exchequer what would be the estimated annual loss of revenue from extending the lower rate band of

1977–78
Value at current prices Value at 1939 prices
£ £
Married person's allowance 1,455 141
Single person's allowance 945 91
Wife's earned income allowance 945 91
1st child Other 1st child Other
Child allowance—
Child not over 11 196 170 19 16
Child over 11 but not over 16 231 205 22 20
Child over 16 261 235 25 23
1978–79 1979–80
Value at current prices Value at 1939 prices Value at current prices Value at 1939 prices
£ £ £ £
Married person's allowance 1,535 137 1,815 143
Single person's allowance 985 88 1,165 92
Wife's earned income allowance 985 88 1,165 92
Child allowance—
Child not over 11 100 9
Child over 11 but not over 16 135 12
Child over 16 165 15

The figures have been calculated on the same basis as those given in reply to my hon. Friend the Member for Norfolk, North (Mr. Howell) on 26 January 1977.—[Vol. 924, c. 641–4].

The prices indices used for 1977–78 onwards are the average general index of retail prices—all items for the calendar years 1977, 1978 and 1979 consistently with the previous answer.

income tax to the first £1,250 of taxable income.

Mr. Peter Rees

[pursuant to his reply, 7 March 1980, c. 352]: About £520 million in a full year at 1979–80 income levels.

Mr. Richard Wainwright

asked the Chancellor of the Exchequer what would be the estimated annual loss of revenue from reducing the lower rate of income tax to 20 per cent.

Mr. Peter Rees

[pursuant to his reply, 7 March 1980, c. 352]: About £895 million in a full year at 1979–80 income levels.