§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer on the same basis as his answer of 3 May,Official Report, column 354, concerning the effect of an upper limit on all income tax allowances and reliefs, if he will estimate the net effect of these options, assuming that all reliefs and allowances are limited to the basic rate of income tax.
§ Mr. MaudeIt is estimated that, at 1991–92 levels of income, restricting all allowances and reliefs to the basic rate of income tax would yield about £2.2 billion. The additional yield from introducing upper limits of £10,000, £15,000 and £20,000 would be about £450 million, £150 million and £100 million, respectively, in a full year. The estimates do not take account of any behavioural effects which might result from the changes.