§ Mr. MandelsonTo ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Peckham (Ms Harman) of 5 March,Official Report, column 336, on the introduction of an upper limit for income tax allowances and reliefs for the years 1992–93 and 1993–94.
§ Mr. Dorrell[holding answer 29 June 1993] : Estimates of the direct revenue yield in a full year at 1992–93 and 1993–94 levels of income from imposition of the specified limits for allowances and reliefs within the tax system for these years are given in the table. These are based on information compiled from a number of statistical surveys and are subject to more than the usual margin of uncertainty, and incorporate the conventional assumption of no changes in mortgage interest rates in 1993–94.
Limit for total allowances and reliefs 1992–93 1993–94 £ million £ million £10,000 690 650 £15,000 380 380 £20,000 270 280 After restriction of the relevant allowances and reliefs to the basic rate the estimated further yield from imposing the specified limits would be as follows: 599W
Full year yield at 1992–93 income levels, £ million Full year yield at 1993–94 income levels, £ million Limit for total allowances and reliefs Limit for total allowances and reliefs After restriction to the basic rate of £10,000 £15,000 £20,000 £10,000 £15,000 £20,000 (a) all personal allowances except the basic personal allowance 610 360 270 590 360 270 (b) relief for personal pension contribution 560 310 230 530 310 240 (c) relief for employees' contribution to occupational pension schemes 630 370 270 610 370 280 (d) allowances and reliefs in (a) and (b) 510 300 220 490 300 230 (e) allowances and reliefs in (a) and (c) 580 350 260 570 360 270 (f) reliefs in (b) and (c) 500 300 220 490 300 230 (g) allowances and reliefs in (a), (b) and (c) 480 290 220 470 300 230 The number of people with total allowances and reliefs in excess of these limits is as follows:
Limit 1992–93 1993–94 £ thousands thousands 10,000 610 420 15,000 85 85 20,000 45 45 The estimates of revenue yield do not take account of any behavioural effects which might result from the introduction of the changes.