Income Tax

HC Deb 21 December 1982 vol 34 c456W

Q47. Mr. Peter Bottomley

asked the Prime Minister what would be the gain to the Exchequer if the effective benefit of (a) personal tax allowances, (b) mortgage interest relief and (c) life insurance premium tax relief were subject to income tax.

The Prime Minister

Such proposals cannot be costed precisely, but the yield from subjecting each item to tax would be

1. (a) personal tax allowances: about £5½ billion;
2. (b) mortgage interest tax relief: about £700 million;
3. (c) life assurance pension relief: about £200 million.

It would be very difficult in practice to tax the value of tax reliefs in this way, and I fear the tax system would be incomprehensible for the public if the attempt was made.