HC Deb 26 July 1985 vol 83 cc874-5W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer how much revenue is raised through income tax on the difference between the relevant personal allowance and (a) £4,500 for a married person and (b) £2,250 for a single person.

Mr. Moore

[pursuant to his reply, 22 July 1985]: I regret that it has not been possible to provide an answer before the summer recess. Therefore, I shall write to the hon. Member and place a copy of the letter in the Library.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer (1) how much revenue is lost by (a) wife's earnings election and (b) wife's earnings allowance;

(2) whether he will publish in the Official Report a table showing the estimated cost of wife's earnings allowance by tax unit income bands in the current financial year.

Mr. Moore

[pursuant to his replies, 22 July 1985]: The information is as follows:

  1. (a) The cost of the wife's earnings election is estimated to be £200 million in a full year at 1985–86 levels of income.
  2. (b) The following table shows the latest estimates of the cost of the wife's earned income allowance in a full year at 1985–86 levels of income and allowances.

Range of joint taxable income (1985–86) (lower limit) Cost of wife's earned income allowance
£ £ million
0 0
2,000 0
3,000 5
4,000 30
5,000 80
6,000 120
7,000 130
8,000 170
9,000 210
10,000 540
12,000 760
15,000 720
20,000 450
30,000 85
Total 3,300