§ Mr. Ieuan Wyn JonesTo ask the Chancellor of the Exchequer if he will estimate the change in Treasury income during the 1988–89 financial year resulting from confining all income tax exemptions to an upper limit of 20 per cent.
§ Mr. Norman Lamont[holding answer 19 January 1988]: The yield in a full year, at 1988–89 levels of income, from restricting all income tax reliefs to 20 per cent. of income after deduction of personal allowances would be about £2¼ billion. This estimate assumes that the 1987–88 income tax regime is indexed to 1988–89 according to the statutory formula and that there is no change in taxpayers' behaviour.