§ Sir Brandon Rhys Williamsasked the Prime Minister, pursuant to her reply to the hon. Member for Kensington 22W on 3 June, Official Report, column 433, what would be the additional costs in terms of revenue forgone if, instead of making all income other than the credits taxable, each individual, counting husbands and wives, separately, were allowed a non-transferable low income-tax exemption, similar to age allowance, of (a) £15, (b) £20 and (c) £25 per week.
§ The Prime Minister[pursuant to her reply, 17 July 1986, c. 579]: The revenue costs of tax allowances at the specified levels are shown below. The offset to the cost resulting from withdrawing the allowance for those with larger incomes would depend on the level of the income limit and the marginal rate of withdrawal. The costs take account of progressive withdrawal of the exemption above the age allowance income limit of £9,400 per annum.
Direct revenue cost of personal allowance Level of allowance £ per week Cost £ billion 15 5 20 7 25 8.5