§ Mr. BurnsTo ask the Chancellor of the Exchequer what would be the cost to the Treasury in a full financial year if tax thresholds were raised in 1989–90 by(a) the rate of inflation, (b) twice the rate of inflation and (c) three times the rate of inflation.
§ Mr. Norman Lamont[holding answer 19 December 1988]: Direct revenue costs of increasing income tax 420W allowances, the basic rate limit, and the capital gains tax annual exempt amount in accordance with statutory indexation provisions and by multiples of those amounts are in the table. Estimates are mainly based on a projection of the 1986–87 survey of personal incomes and are provisional.
Direct revenue costs of increasing 1988–89 income and capital gains tax thresholds at 1989–90 levels of income and gains £ million Amounts due under indexation 1,750 Twice amounts due under indexation 3,400 Three times amounts due under indexation 5,000 The cost in a full year of increasing the inheritance tax threshold by the same amounts would be (a) £80 million, (b) £150 million and (c) £210 million.