§ Mr. Timothy Smithasked the Chancellor of the Exchequer how many claims for tax relief under the business start-up scheme have been allowed to date, and at what cost to the Exchequer.
§ Mr. Ridley[pursuant to his reply, 24 February 1983, c. 540]: Claims for tax relief under the business start-up scheme cannot be made until after the end of the tax year in which the shares were issued, and in some cases even later if the company is not already trading. It is therefore too soon to have precise information about investments made even in the first year of the scheme, but the scheme is gaining momentum.
Income Tax Threshold in National Currency Threshold in £ Sterling Rate of Income Tax Rate of Income Tax and Social Security Contributions £ Per cent. Per cent. Single Person Belgium (Fr) 152,900 2,015 19.3 (20.4) 27.4 (28.5) Denmark (Kr) 19,400 1,430 14.4 (41.2) 18.9 (45.7) France (F) 33,790 3,100 18 27.2 Germany (DM) 7,470 1,940 18 35 Greece (Dr) 168,500 1,480 5.9 14.4 Ireland (£IR) 2,362 2,035 25 32.5 Italy (L) 2,982,170 1,345 10 16.7 Luxembourg (Lfr) 202,270 2,660 12.3 22.8 Netherlands (fl) 11,415 2,685 16.3 35.2 United Kingdom (£) 1,565 1,565 30 38.75 Married Couple Belgium (Fr) 192,150 2,560 21.7 (23) 29.55 (30.7) Denmark (Kr) 36,800 2,705 14.4(41.2) 18.9 (45.7) France (F) 44,605 4,090 7.2 13.6 Germany (DM) 12,940 3,360 18 35 Greece (Dr) 227,100 1,990 7.6 15.9 Ireland (£IR) 4,400 3,790 See note 5 See note 5 Italy (L) 4,497,570 2,025 16 22.3 Luxembourg (Lfr) 287,730 3,785 12.3 22.8 Netherlands (fl) 14,570 3,430 16.3 35.2 United Kingdom (£) 2,445 2,445 30 38.75 Married Couple with two Dependent Children (see note 7) Belgium (Fr) 234.125 3,080 22.05 (23.4) 29.9(31.1) Denmark (Kr) 36,800 2,705 14.4(41.2) 18.9 (45.7) France (F) 64,835 5,920 7.2 13.6 Germany (DM) 12,940 3,360 18 35 Greece (Dr) 407,700 3,580 17.1 24.5 Ireland (£IR) 4,400 3,790 See note 5 See note 5 Italy (L) 4,984,000 2,245 16 22.3 Luxembourg (Lfr) 446,180 5,810 12.3 22.8 Netherlands (fl) 14,570 3,430 16.3 35.2 United Kingdom (£) 2,445 2,445 30 38.75 Notes: [Part of Answer]
1. The thresholds and rates shown are those for 1982, (1982–83 in the case of the United Kingdom and Ireland). For Belgium and Italy the 1982 figures are provisional.
2. Conversions to sterling were made at the exchange rate prevailing in London on 31 December 1982. They may not fully reflect differences in purchasing power between sterling and other currencies.
3. The income for the married couple is assumed to be wholly employment income of the husband. It is assumed that the United Kingdom employee is contracted-in to the State pension scheme.
4. In computing the thresholds and rates account has been taken of personal reliefs, universal minimum expenses deductions, employment income reliefs and other standard reliefs, as well as income tax relief for social security contributions in certain countries.
5. The income tax rates shown are the actual rates at which employees earning income at the threshold level start paying