§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what is his current estimate of the number of invalidity pensioners who have lost more as a result of the 5 per cent. abatement of their benefit than they would pay in tax if invalidity benefit were taxable; and how many such people would pay no tax at all if invalidity benefit were taxable.
§ Sir Geoffrey Howe[pursuant to his reply, 8 April 1981, c. 268]; For 1981–82, the standard rate of invalidity pensions receivable over the whole year is above the tax threshold for both single and married persons. The number of cases in which a beneficiary's income for the year is less than his personal tax allowances will therefore be very small, and if the pension were taxable a liability to tax would arise in most cases. However, as was explained to the right hon. Member last year—[Vol. 984, c. 157W 381–82]—the data available do not permit precise estimates to be made of the complete tax positon of recipients of invalidity pensions. In particular, no estimate is available of the numbers losing more through abatement of pension than they would if the pension were taxable.