§ Mr. Ralph Howellasked the Chancellor of the Exchequer what would be the tax expenditure savings, and by how much tax thresholds could be raised if (a) the allowances could be set against standard rate tax only, (b) all the other exemptions and allowances detailed at table 5.13 of Cmnd. 7841 were abolished and (c) child benefit were made reckonable for tax.
§ Mr. RidleyWith respect to(b), I regret that an estimate of the combined yield from abolition of all reliefs and allowances is not available. The information in respect of the other items is as follows:
Full year saving at 1982–83 Cost equivalent increase in tax thresholds: income levels Single allowance Married man's allowance £ million £ £ (a) Set main personal allowances against basic rate only 325 30 50 (c) Tax child benefit 1,000 90 150 The threshold increases corresponding to a given yield have been calculated on the assumption that all the main personal allowances—including the aged income limit—would be raised by the same percentage, whilst the higher rate thresholds remained the same.