§ Mr. Rookerasked the Chancellor of the Exchequer if he can now set out the 1984–85 levels of income tax allowances, thresholds and bands assuming the indexation provisions of the Finance Act 1980 are followed, and give an estimate of the numbers who will be removed from income tax.
§ Mr. Moore[pursuant to his reply, 20 January 1984, c. 346]: The indexed levels of income tax allowances, thresholds and bands are as follows. It is estimated that about 500,000 fewer people would be liable to income tax in 1984–85 if allowances were to be indexed than would be liable if the present levels of allowances were to be retained.
1983–84 £
1984–85 Assuming indexation £
Income tax allowances Single and wife's earned income allowance 1,785 1,885 Married allowance 2,795 2,945 Additional personal and widow's bereavement allowance 1,010 1,060 Single age allowance 2,360 2,490 Married age allowance 3,755 3,955 Aged income limit 7,600 8,100
per cent Bands of taxable income 1983–84 £
1984–85 Assuming indexation £
Income tax rates 30 0–14,600 0–15,400 40 14,601–17,200 15,401–18,200 45 17,201–21,800 18,201–23,100 50 21,801–28,900 23,101–30,600 55 28,901–36,000 30,601–38,100 60 over 36,000 over 38,100 Investment income surcharge threshold 7,100 7,500