§ Miss Richardsonasked the Chancellor of the Exchequer how many (a) tax units and (b) individuals taken out of tax by his recent Budget had children.
§ Mr. RidleyAbout 120,000 fewer tax units with dependent children will pay income tax in 1983-84 than if personal allowances had remained at 1982-83 levels. Of these, about 15,000 are single-parent families.
§ Mr. Peter Bottomleyasked the Chancellor of the Exchequer if he will update to 1983-84 the information on tax reliefs provided in his answer of 21 December 1982 to the hon. Member for Kensington (Sir B. Rhys Williams), Official Report, c. 499.
§ Mr. RidleyThe yield in a full year at 1983-84 income levels from restricting all personal allowances to the basic rate is estimated at about £325 million. For other allowances and reliefs, information is available only in respect of the reliefs for mortgage interest, retirement annuity premiums, and superannuation contributions. It is not possible to estimate precisely the combined effect of restricting these reliefs and personal allowances to the basic rate, but the yield is thought to be in the region of £675 million. On the basis of the Budget proposals, which will be implemented when we return after the election, the figures are £300 million and £600 million respectively.
These estimates are on the basis of thresholds and allowances in the Finance Bill now before Parliament.
411W
§ Mr. Peter Bottomleyasked the Chancellor of the Exchequer what would be the net saving in 1983–84 of abolishing the married man's tax allowance for those below pension age and introducing a partially transferable tax allowance equal to 56 per cent. of the single person's allowance.
§ Mr. RidleyThe net tax yield in a full year, at 1983–84 levels of income, allowances, and so on, of replacing the married man's tax allowance for those below pension age by the single person's allowance plus a transferable allowance equal to 56 per cent. of the single person's allowance would be approximately £1,250 million, assuming independent taxation of husbands and wives.