HC Deb 17 December 1981 vol 15 cc221-2W
Dr. McDonald

asked the Chancellor of the Exchequer what would be the saving in a full year at 1981–82 levels if (a) all tax reliefs and (b) personal tax allowances were allowed against the standard rate of tax only.

Mr. Ridley

[pursuant to his reply, 11 December 1981, c. 60]:

On (a) the information requested is not available in respect of all tax reliefs other than the personal allowances, but an approximate estimate in respect of the total of three major reliefs—for mortgage interest, retirement annuity payments, and employees' superannuation contributions —is £250 million in a full year at 1981–82 income levels.

On (b) the savings in respect of personal allowances would be about £300 million. This is on the assumption that couples who would find it advantageous to elect for separate taxation of the wife's earnings would be able to do so, even if they do not currently find it advantageous.

Dr. McDonald

asked the Chancellor of the Exchequer what would be the cost of each 1 per cent. increase in a full year at 1981–82 levels in (a) single person's tax allowance, (b) married man's tax allowance, (c) additional personal allowance, (d) age allowance. (e) higher rate threshold and bands, (f) investment income surcharge and (g) child benefit.

Mr. Ridley

[pursuant to his reply, 14 December 1981, c. 60]: The cost of each 1 per cent. increase in a full year at 1981–82 income levels is: —

£ million
(a) 55
(b) 75
(c) 1
(d) 15*
(e) 20
(f) 3
(g) 27
* Includes married and single age allowances, and aged income limit.