§ Mr. Bestasked the Chancellor of the Exchequer if he will estimate how many pensioners who previously paid no income tax are now paying tax as a result of the decision not to raise personal allowances; and by how much personal allowances would have to be raised in the forthcoming financial year in order that these persons should pay no income tax.
§ Mr. RidleyI regret that information on which to answer the question exactly is not available. Pensioners cannot readily be distinguished in Inland Revenue statistics nor is it possible from the sample data on which estimates are based to link individual records from one tax year to the next and so identify individuals who are now paying tax but who did not do so previously. However, the group consisting of those aged 65 or over (or married to a partner who is 65 or over) can be identified. Within this group, it is estimated that there will be about 400, 000 more taxpayers in 1981–82 than there would have been if allowances had been increased in line with the statutory indexation provisions. It is not possible to provide a satisfactory estimate of the increase in allowances necessary to take this number out of tax in 1982–83 as this depends on future levels of pensions and other sources of taxable income.