§ Sir Peter Hordernasked the Chancellor of the Exchequer if he will estimate the number of people who would be taken out of tax, and the cost to the Exchequer, if personal allowances were increased by (a) indexation of 5.7 per cent. and ( b) 5 per cent., 10 per cent., 15 per cent., and 20 per cent. above indexation in 1986–87.
§ Mr. MooreThe information is as follows:
Option Full year cost (£ million) Reduction in number of taxpayers *('000s) Indexation 1,280 500 Indexation and a further 5 per cent. on allowances 2,330 1,050 Indexation and a further 10 per cent. on allowances 3,380 1,550 Indexation and a further 15 per cent. on allowances 4,380 2,000 Indexation and a further 20 per cent. on allowances 5,380 2,450 * Compared with 1985–86 allowance levels.