HC Deb 08 December 1994 vol 251 c328W
Mr. Wicks

To ask the Chancellor of the Exchequer if he will publish a table showing the cost of the main personal and non-personal tax allowances and the revenue saved from restricting them to the rates of(a) 25 per cent., (b) 20 per cent. and (c) 15 per cent.

Sir George Young

Estimates for 1995–96 based on information about individuals on Inland Revenue records in 1992–93 projected in line with the forecast published in the "Financial Statement and Budget Report" 1995–96 are given. These costs exclude the value of personal allowances to some individuals whose income is below the tax threshold. No estimates for restricting the married couple's and related allowances are shown since these are given at 15 per cent. in 1995–96.

£ billion
Personal allowance1 Married couple's and related allowances2
Total revenue cost 27.7 3.13
Yield from restricting allowances
a) to the basic rate 1.6 not applicable
b) to 20 per cent. 5.9 not applicable
c) to 15 per cent. 10.9 not applicable
1 Including the age-related personal allowance
2 Including the age-related married couple's allowance, the additional personal allowance and the widow's bereavement allowance
3 The costs assume that the personal allowance remains in place. If the personal allowance were abolished, the cost of the married couple's and related allowance would be substantially greater.