§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is his estimate of the yield from income tax on the state pension for(a) single persons and (b) married couples; and whether he has any plans to reduce the income tax ceiling for the age allowance to a means-tested level.
§ Mr. Norman LamontPeople receiving a state retirement pension will not pay income tax unless their total income for tax purposes, including the pension and all other sources of income, exceeds the appropriate age or other personal allowance. If total income is sufficient for income tax to be due, it would be inappropriate to attribute that tax to one particular source of income. There are no plans to reduce the income limit for age allowance.