HL Deb 25 April 1988 vol 496 cc109-10WA
Lord Banks

asked Her Majesty's Government:

What was, or is estimated to have been, the total income of persons liable to income tax in the fiscal years 1986–87 and 1987–88.

The Secretary of State for Trade and Industry (Lord Young of Graffham)

Total incomes of those liable to income tax are estimated at £239 billion in 1986–87 and £259 billion in 1987–88. These figures are based on projections of the 1985–86 Survey of Personal Incomes and are therefore provisional.

Lord Banks

asked Her Majesty's Government:

What was the cost, or is estimated to have been, the cost in lost revenue of the single person's married man's and wife's earned income tax allowances in the fiscal years 1986–87 and 1987–88.

Lord Young of Graffham

The information is given in the table:

£ million Estimated cost
1986–87 1987–88
Married man's allowance1 13,350 13,250
Single person's allowance2 8,050 8,050
Wife's earned income allowance2 3,600 3,600

(1)Includes the cost of the difference between the married man's and single person's allowance, £4,450 million in 1986–87 and 1987–88.

(2) Where a married couple has elected for the wife's earnings to be taxed separately they are each treated as qualifying for a single personal allowance. The cost of the allowances due in these circumstances is included in the cost of the single person's allowance.

The costs of tax allowances and reliefs are published annually in the White Paper on the Government's Expenditure Plans.