§ Mr. Fieldasked the Chancellor of the Exchequer (1) if he will list the overall effect by groups of taxpayers earning (a) two-thirds of average earnings, (b) average earnings (c) twice (d) three (e) four (f) five and (g) ten times average earnings, according to whether the taxpayer is (i) single, (ii) married and (iii) married with one, two, three, four or more children of his Budget proposal to change the customs and excise duty on tobacco;
(2) if he will list the overall effect by group of taxpayers earning (a) two-thirds average earnings, (b) average earnings (c) twice (d) three (e) four (f) five and (g) 10 times average earnings according to whether the taxpayer is (i) single, (ii) married, (iii) married with one, two, three, four or more children of his budget proposal to change the customs and excise duty on alcoholic drinks.
§ Mr. Bruce-Gardyne[pursuant to his replies, 28 March 1983, c. 6 and 40]: The information requested is not available.
§ Mr. Fieldasked the Chancellor of the Exchequer (1) if he will list the overall effect by group of taxpayers earning (a) two thirds of average earnings, (b) average earnings (c) twice, (d) three, (e) four, (f) five and (g) 10 times average earnings, according to whether the taxpayer is (i) single, (ii) married and (iii) married with one, two, three, four or more children of his Budget proposal to (1) increase the single person's allowance and the wife's maximum earned income
336WAll taxpayers would lose from a reversion to the 1978–79 regime without indexation; and all those with incomes over £10,000 in 1983–84 would lose from a reversion to an indexed 1978–79 regime. The disaggregated information for those ranges containing both gainers and losers is as follows:
relief from £1,565 to £1,785 and the married allowance from £2,445 to £2,795 (2) increase the basic rate limit to £14,600 and (3) increase the width of the 40 per cent. band to £2,600 of the 45 per cent. band to £4,600 and of the 50 per cent. and 55 per cent. bands to £7,100;
(2) if he will list the overall effect by group of taxpayers earning (a) two thirds of average earnings, (b) average earnings (c) twice, (d) three, (e)four, (f)five and (g) 10 times average earnings, according to whether the taxpayer is (i) single, (ii) married and (iii) married with one, two, three, four or more children of his Budget proposal to (1) raise the threshold for the investment income surcharge for 1983–84 from £6,250 to £7,100 (2) extend the widows' bereavement allowance to cover the year after the husband's death (3) increase the limit on loans qualifying for mortgage interest relief from £25,000 to £30,000 and (4) extend mortgage interest relief to interest paid on certain loans for the purchase of a house by a borrower who is under a contractual obligation to live in other accommodation;
(3) if he will list the net individual income effect on taxpayers earning (a) two thirds average earnings, (b) average earnings (c) twice, (d) three, (e) four, (f) five and (g) 10 times average earnings, according to whether the taxpayer is (i) single, (ii) married and (iii) married with one, two, three, four or more children of his Budget proposal to (1) raise the threshold for the investment income surcharge for 1983–84 from £6,250 to £7,100 (2) extend the widows' bereavement allowance to cover the year after the husband' s death (3) increase the limit on loans qualifying for mortgage interest relief from £25,000 to £30,000 and (4) extend mortgage interest relief to interest paid on certain loans for the purchase of a house by a borrower who is under a contractual obligation to live in other accommodation;
(4) if he will list the net individual income effect on taxpayers earning (a) two thirds average earnings, (b) average earnings, (c) twice, (d) three, (e) four, (f) five and (g) 10 times average earnings according to whether the taxpayer is (i) single, (ii) married and (iii) married with one, two, three, four or more children of his Budget proposal to (1) increase the single person's allowance and the wife's maximum earned income relief from £1,565 to £1,785 and the married allowance from £2,445 to £2,795, (2) increase the basic rate limit to £14,600 and (3) increase the width of the 40 per cent. band to £2,600 of the 45 per cent. band to £4,600 and of the 50 per cent. and 55 per cent. bands to £7,100.
§ Mr. Ridley[pursuant to his replies, 28 March 1983, c. 64 and 66]: I am not sure what the hon. Member has in mind, in 337W the first two questions above, by the overall effect for groups of taxpayers at specific multiples of average earnings. The effect on the net income of an individual taxpayer earning the specified multiples of average earnings for 1983–84 is given in the table below for some of the Budget measures listed in the hon. Member's questions. The comparison is with income tax allowances and thresholds unchanged from their 1982–83 levels. In these examples, the married couple is assumed to have no wife's earned income. The effect of the proposals listed is the same regardless of the number of children; but the proposed increase in child benefit will increase net income by 65p a week per child from November 1983.
The gain from the increase in the investment income surcharge threshold depends on the amount of investment
Specimen Reductions in Income Tax Payments Resulting from Individual Budget Proposals (1983) £ per week Multiple of average earnings* ⅔ 1 2 3 4 5 10 Increase in personal allowances; Single 1.27 1.27 1.90 2.13 2.54 2.54 2.54 Married 2.02 2.02 3.03 3.37 4.04 4.04 4.04 Increase in basic rate limit Single — — 3.46 3 46 3.46 3.46 3.46 Married — — 3.46 3 46 3.46 3.46 3.46 Increase in higher rate band widths Single — — 0.99 4 62 10.53 12.40 12.40 Married — — 0.02 4.62 9.56 12.40 12.40 Increase in investment income surcharge threshold Single — — — — 2.45 2.45 2.45 Married — — — — — — 2.45 * Average earnings for full time men, all occupations, in 1983–84, have been assumed, for illustration, to be £172.30 per week.