HC Deb 24 January 1992 vol 202 cc387-8W
Mr. Carr

To ask the Chancellor of the Exchequer what would be the yield/cost in 1991–92 and 1992–93 on both a first year and a full year basis of(a) raising the basic rate limit to taxable income of £29,000,

Privatisation proceeds 1979–80 to 1990–91 ( outturn)
1979–80 1980–81 1981–82 1982–83 1983–84 1984–85 1985–86 1986–87 1987–88 1988–89 1989–90 1990–91
Enterprise Oil 384
Forestry Commission 14 21 28 15 16 13 12 15 11
General Practice Finance Corporation 67
Harland and Wolff 8
Land Settlement 2 12 5 2
Motorway Service Area Leases 4 1 2 1 2 7
National Enterprise Board Holdings 37 83 2 168 30 34
National Freight Consortium 15
Professional and Executive Recruitment 5
Plant Breeding Institute 265
Rolls-Royce 1,029 3
Rover Group 3150
and £46,000, (c) charging higher rate tax at 41 per cent. on taxable income above £46,000, (d) restricting all personal tax allowances to the basic rate, (e) restricting relief for pension contributions made by individuals to the basic rate, (f) a combination of (a), (b), (c) and (d) and (g) a combination of (a), (b), (c) and (e).

Mr. Maude

Estimates of the increase in liability to income tax compared with statutory indexation in 1992–93 are as follows. They do not allow for any behavioural effects that might result from such a change to the tax system and do not include capital gains tax:

£ million
Cost(-)/yield (+) in a full year at 1992–93 levels of income
Tax regime specified in (a), (b) and (c) -1,530
(d) Restriction of all personal allowances to the basic rate +1,460
(e) Restriction of pension contributions to the basic rate +400
(f) Combination of (a), (b), (c) and (d) -820
(g) Combination of (a), (b), (c) and (e) -1,250

Approximately one half of the full year yield from such regimes would affect income tax receipts in the first year.