HC Deb 20 March 1989 vol 149 cc453-5W
Mr. Grylls

To ask the Chancellor of the Exchequer what would be the full cost to the Exchequer of raising the threshold when tax-payers have to pay 40 per cent. income tax(a) from £20,000 to £21,000, (b) from £21,000 to £22,000, (c) from £22,000 to £23,000, (d) from £23,000 to £24,000 and (e) from £24,000 to £25,000.

Mr. Norman Lamont

The information available about the tax treatment of depreciation on shipping investment is as follows:

Mr. Norman Lamont

[holding answer 10 March 1989]: The direct revenue cost in a full year at 1989–90 income levels of raising the basic rate limit by £1,000 from the 1988–89 level of £19,300 is estimated to be about £200 million. Each further increase of £1,000 would cost about £10 million less, so that the cost of raising the limit from £24,000 to £25,000 would be about £150 million.

Estimates are based on a projection of the 1986–87 survey of personal incomes and are provisional.

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