§ Mr. Peter Bottomleyasked the Chancellor of the Exchequer what would be the saving in the financial year 1983–84, if only the first £1,565 of the married man's tax allowance were uprated in line with the increase in the retail price index under the formula introduced in section 22(2) of the Finance Act 1977, assuming that that increase is (a) 6.5 per cent., (b) 6 per cent., (c) 5.5 per cent. and (d) 5 per cent.; how much of that saving would be attributable to those below the age of 65 years; and what would be the net losses to married men in each case.
§ Mr. RidleyThe difference between allowances levels on the assumptions stated is shown in the following table. The loss for a married mart paying tax at the basic rale is also shown. Broad estimates of the corresponding total revenue savings at 1983–84 income levels can be obtained using the "ready reckoner" published at table 5.5 of the autumn statement. About 85 per cent. of the total saving would be attributable to men below the age of 65.
hence of the saving if the rate of relief were reduced, cannot be provided until income tax rates, allowances and thresholds for that year have been fixed.