§ Mr. Meacherasked the Chancellor of the Exchequer what would be the cost to the Exchequer if transferable allowances were introduced with no losers.
§ Mr. Norman Lamont[pursuant to his reply, 15 December 1986, c. 426]: The revenue consequences of a move to transferable allowances depend, amongst other things, on the length of the transitional period and the basic rate of income tax at the time of the change. These are discussed in paragraphs 3.5 to 3.9 of the Green Paper, "The Reform of Personal Taxation". (Cmnd. 9756).
§ Mr. Meacherasked the Chancellor of the Exchequer how many winners and losers there would he if transferable allowances were introduced at nil cost to the Exchequer; and how many would win or lose (a) less than £1 per week, (b) £1 to £2, (c) £2 to £3, (d) £3 to £4, (e) £4 to £5, (f) £5 to £7, (g) £7 to £10, (h) £10 to £15, (i) £15 to £20, and (j) more than £20 per week.
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§ Mr. Norman Lamont[pursuant to his reply, 15 December 1986, c. 426]: At 1986–87 levels of income a transferrable allowance of £2,395 would produce the same income tax yield as the current tax regime. The changes in tax liability are shown below.
Numbers of taxpayers (thousands) Change in tax in 1986–87 (£ per week) Paying less tax Paying more tax Under £1 8,470 320 £l-£2 750 340 £2-£3 210 1,420 £3-£4 200 360 £4-£5 190 250 £5-£7 3,890 4,020 £7-£10 170 70 £10-£15 120 30 £15-£20 10 0 Over £20 40 0 Total 14,050 6,810