§ Mr. Peter Bottomleyasked the Chancellor of the Exchequer if he will update the figures on tax break-even points provided in his reply of 30 March to the hon. Member for Wolwich, West, Official Report, c.100–1, in the light of the latest information on earnings levels.
§ Mr. RidleyThe information, including small revisions to some of the index numbers for 1981–82, is as follows: 287W
Tax year 1981–82 1982–83 Single Person Threshold at current prices £1,375 £1,565 Threshold at 1949–50 prices (index) 1949–50=100 108.2 115.1 Threshold as percentage of average manual earnings: 20.6 per cent. 21.5 per cent. Married Man without children Threshold at current prices £2,145 £2,445 Threshold at 1949–50 prices (index) 1949–50=100 106.0 112.9 Threshold as percentage of average manual earnings 32.1 per cent. 33.5 per cent. Married Man with two children under 11 Threshold at current prices £2,145 £2,445 Threshold at 1949–50 prices (index) 1949–50=100 66.8 71.1 Threshold as percentage of average manual earnings 32.1 per cent. 33.5 per cent. Tax free income at current prices 2,658 3,014 Tax free income at 1949–50 prices (index) 1949–50=100 79.9 84.6 Tax free income as percentage of average income* 36.9 per cent. 38.3 per cent. Break even point at current prices 3,855 4,341 Break even point at 1949–50 prices (index) 1949–50=100 97.6 102.6 Break even point as percentage of average manual earnings 57.6 per cent. 59.5 per cent. Married Man with four children† Threshold at current prices .2,145 £2,445 Threshold at 1949–50 prices (index) 1949–50=100 50.0 53.2 Threshold as percentage of annual manual earnings 32.1 per cent. 33.5 per cent. Tax free income at current prices 3,171 3,583
Assumed indexation percentage for 1983–84 Difference in levels* for Extra tax payable per year by basic rate† taxpayer entitled to Married man's allowance Aged married allowance Married man's allowance Aged married allowance £ £ £ £ (a) 6.5 50 80 15 24 (b) 6 50 70 15 21 (c) 5.5 50 70 15 21 (d) 5 50 60 15 18 * These amounts represent the difference in 1983–84 between the level of allowance if (a) the whole allowance were indexed by the appropriate percentage and (b) if only that part of the allowance equivalent to the corresponding single allowance were indexed. The rules for rounding set out in section 24 of the Finance Act 1980 have been followed in each case.
† Assuming a basic rate of 30 per cent.