HC Deb 15 March 1988 vol 129 cc494-5W
Mr. Gordon Brown

To ask the Chancellor of the Exchequer if he will publish a table showing the real increase in the direct tax allowances and reliefs published in table 6.5 of "The Government's Expenditure Plans 1988–89 to 1990–91,"Cm 288–1.

Mr. Norman Lamont

[holding answer 3 March 1988]: The table shows the percentage change, in real terms, between 1986–87 and 1987–88 of the latest estimates of the cost of direct tax allowances and reliefs, based on the forecast movement of 4 per cent. in the general index of retail prices to 1987–88. The percentage changes should be treated only as an approximate guide. Excluded from the table are those reliefs marked with an asterisk in table 6.5 of Cm 288–1 or in the corresponding 1986–87 table because the estimates were subject to a wide margin of error, and those reliefs whose costs were £5 million or less in either year.

Estimated change in cost in real terms between 1986–87 and 1987–88
Per cent.
Income Tax
Married man's allowance -3
Single person's allowance -5
Wife's earned income allowance -1
Husband and wife; election for separate taxation of wife's earnings 50
Age allowance -1
Additional personal allowance for one parent family -4
Widow's bereavement allowance -4
Dependent relative allowance -4
Relief for:
Employees' contributions to occupational pension schemes -2
Investment income of occupational pension schemes -3
Lump sum payments to pensioners -7
Retirement annuity premiums 4
Life assurance premiums (where insurance contract made before 14 March 1984) -14
Qualifying interest on loans for purchase or improvement of owner-occupied etc property -2
Schedule E work expenses allowed as a deduction -7
Half of Class 4 National Insurance Contributions -5
Exemption of:
Income of charities 8

Per cent.
British government securities where owner not ordinarily resident in United Kingdom 6
Foreign service allowance paid to Crown Servants abroad -4
Petroleum Revenue Tax
Uplift on qualifying expenditure 13
Relief for exploration and appraisal expenditure -22
Oil allowance—Petroleum Revenue Tax 49
Safeguard: restricting petroleum revenue tax to not more than 80 per cent. of the excess over a 30 per cent. return on historic capital cost 72
Tariff receipt allowance 0
Capital Gains Tax
Exemption of:
First £6,600 of gains of individuals and first £3,300 of gains of trustees 13
Inheritance Tax/Capital Transfer Tax
Exemption of:
Transfers to charities on death -4
Relief for:
Agricultural property -4
Business property -4
Stamp Duty
Exemption of:
Transfers of government stocks and loan stocks 11
Transfers of houses or other property (not stocks and shares) where the consideration does not exceed £30,000 -4

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