HC Deb 11 February 1992 vol 203 cc429-30W
Mr. Tom Clarke

To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1992–93, and in a full year, of introducing an upper limit on all income tax allowances and reliefs of(a) £9,000, (b) £10,000, (c) £11,000, (d) £12,000, (e) £13,000, (f) £14,000, (g) £15,000 and (h) £16,000 giving the number of people affected in each case, distinguishing between (i) basic-rate taxpayers and (ii) higher-rate taxpayers, and giving the number who brought into higher rate tax in each case, in the United Kingdom.

Mr. Maude

It is estimated that at 1991–92 levels of income the introduction of the upper limits specified would yield the following:

Upper limit for total allowances and reliefs Yield in full year
£ £ million
9,000 930
10,000 590
11,000 440
12,000 360
13,000 310
14,000 270
15,000 240
16,000 210

The number of people who would be affected are as follows:

Upper limit for total allowances and reliefs £ Basic rate taxpayers and non taxpayers (000's) Higher rate taxpayers (000's)
9,000 1,090 555
10,000 250 385
11,000 55 215
12,000 30 135
13,000 20 100
14,000 15 75
15,000 10 65
16,000 10 55

Fewer than 5,000 basic rate taxpayers would become higher rate taxpayers.

The effect on receipts in the first year would depend on the administrative arrangements for applying a limit.

It is not possible to provide detailed estimates for 1992–93.

The estimates do not take account of any behavioural effects which might result from the introduction of such a limit.

Mr. Tom Clarke

To ask the Chancellor of the Exchequer what is his estimate of the average tax allowances and reliefs for those with gross incomes(a) under £10,000, (b) between £10,000 and £20,000, (c) between £20,000 and £30,000, (d) between £30,000 and £40,000, (e) between £40,000 and £50,000, (f) between £50,000 and £60,000, (g) between £60,000 and £70,000, (h) between £70,000 and £80,000 and (i) above £80,000.

Mr. Maude

Latest estimates for taxpayers in 1991–92 are as follows:

Gross income £ per year Amount of tax reliefs and allowances set against income £
0-10,000 4,200
10,000-20,000 5,900
20,000-30,000 7,000
30,000-40,000 7,800
40,000-50,000 8,400
50,000-60,000 8,900
60,000-70,000 9,500
70,000-80,000 9,900
Over 80,000 13,300
Average 5,500

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