§ Mr. Tom ClarkeTo ask the Chancellor of the Exchequer what would be the revenue effect in(a) 1992–93 and (b) a full year if (i) all personal tax allowances except the single person's allowance, (ii) employee contributions to occupational pensions, (iii) contributions to personal pensions, (iv) reliefs other than those listed at (i) to (iii) above, (v) a combination of (i), (ii), (iii) and (iv), (vi) a combination of (i), (ii) and (iii), (vii) a combination of (ii) and (iii), (viii) a combination of (ii), (iii) and (iv), (ix) a combination of (ii) and (iv) and (x) a combination of (iii) and (iv), were restricted to the basic rate, giving the numbers affected in each case, distinguishing between (1) basic rate taxpayers and (2) higher rate taxpayers and giving the number who are brought into higher rate tax in each case for the United Kingdom.
§ Mr. MaudeEstimates of the increase in liability to income tax in a full year at 1991–92 levels of income are given in the following table:
Yield following restriction of specified allowances and reliefs to the basic rate £ million (i) All allowances except the personal allowance 300 (ii) Occupational pension contributions 250 (iii) Personal pension contributions 150 (iv) All reliefs other than pension contributions 150 (v) A combination of (i), (ii), (iii) and (iv) 900 (vi) A combination of (i), (ii) and (iii) 750 (vii) A combination of (ii) and (iii) 400 (viii) A combination of (ii), (iii) and (iv) 550 (ix) A combination of (ii) and (iv) 400 (x) A combination of (iii) and (iv) 300 About 1.8 million taxpayers would be affected by the restriction of all allowances, except the personal allowance, and reliefs to the basic rate of whom 1.5 million are currently liable at the higher rate and 0.3 million at the basic rate.
The estimates of revenue yield do not take account of any behavioural effects which might result from such restrictions.
I regret that it is not possible to provide estimates for 1992–93.