Married Man's Tax Allowance

HC Deb 13 December 1983 vol 50 cc395-6W

Mr. Squire

asked the Chancellor of the Exchequer what would be the net cost of increasing the married man's allowance to provide a gain in weekly net income for a standard rate taxpayer of (a) £1 and (b) £2.

Mr. Moore

On the assumption that the same increase in net income was provided to taxpayers qualifying for the married age allowance, the costs in a full year at 1984–85 levels of income would be about £610 million and £1,210 million compared with the illustrative income tax regime for 1984–85 in table 4.1 of autumn statement 1983. If the change excluded aged taxpayers, the costs would be £570 million and £1,130 million, respectively.

Mr. Squire

asked the Chancellor of the Exchequer what would be the saving in the financial year 1984–85 if only the first £1,785 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 5 per cent.

Mr. Moore

On the assumption that the restriction did not apply to the married age allowance the extra tax due for 1984–85 would be about £160 million, of which some £130 million would be collected in 1984–85.