§ Mr. Strawasked the Chancellor of the Exchequer (1) if he will list the aggregate totals of the tax changes of the 151W items listed in questions of the hon. Member for Blackburn of 15 February in respect of the 1979, 1980 and 1981 budgets, and of all items;
152W
- (2) what is the estimated full-year cost at 1982–83 prices and incomes, in each case of the following tax changes announced in the 1981 Budget—table 2, FSBR 1981–82 refers: (1) capital gains tax: settled property rules, including roll-over relief, (2) capital transfer tax (a) changes in the rates on lifetime transfers, (b) limitation of cumulation period to 10 years, (c) increase in annual exemption for lifetime gifts, (d) extension of interest free instalment facilities, (e) extension of transitional period for discretionary trusts,(f) extension and amalgamation of quick succession reliefs and (g) other changes;
- (3) what is the estimated full—year cost at 1982–83 prices and incomes, in each case of the following tax changes announced to 1980 Budget—table 2 FSBR 1980–81 refers: (1) income tax: (a) increase in higher rate threshold to £11,250, (b) changes in further higher rate threshold, (c) increase in investment income surcharge threshold, (d) income tax relief for capital losses (2) capital gains tax (a)£3,000 exempt slice for individuals and £1,500 for trustees (b) roll—over relief for lifetime gifts (3) capital transfer tax (a) increase in threshold and (b) other minor items and (4) stamp duties raising of threshold by £5,000;
- (4) what is the estimated full—year cost, at 1982–83 prices and incomes, in each case of the following tax changes announced in the 1979 Budget—table 16 FSBR 1979–80 refers: (1) income tax (a)extension of basic rate band by £2,000, (b) changes in higher rates and thresholds and (c) increase in investment income surcharge thresholds (2) capital transfer tax: extension of transitional period for discretionary trusts.
§ Mr. Ridley[pursuant to his replies, 15 February 1982, c. 26–7]: The hon. Member's questions involve applying tax rates and allowances in money terms prevailing in earlier years— for example a 40 per cent. rate of income tax charged in 1978–79 on taxable income of £8,001—to the prices and incomes of 1982–83. No such calculation can usefully be made because of the large number of hypothetical assumptions required. It would be necessary to take a view on what prices and incomes would be in 1982–83 if a different tax burden had prevailed over the past few years. I regret, therefore, that an answer cannot be given.