§ Mr. Nigel GriffithsTo ask the Chancellor of the Exchequer if he will update his answer of 11 February 1992 to the hon. Member for Monklands, West (Mr. Clarke),Official Report, column 429, on the effect on Treasury revenues of introducing limits on allowances and reliefs, including in the calculation only those allowances and reliefs taken at the marginal rate. [39099]
§ Mr. JackIt is estimated that at 1995–96 levels of income the introduction of the upper limits specified would yield the following:
Upper limit for total allowances and reliefs1 £ Yield in full year £ million 9,000 560 10,000 490 11,000 430 12,000 380 13,000 340 14,000 310 15,000 290 16,000 260 1 Including only allowances and reliefs given at marginal rates. The number of people who would be affected are as follows:
£ Thousands Upper limit for total allowances and reliefs1 £ Basic rate taxpayers, lower rate taxpayers and non taxpayers Higher rate taxpayers 9,000 50 180 10,000 30 140 11,000 30 110 12,000 20 90 13,000 10 80 14,000 10 70 15,000 10 60 16,000 10 50 1 Including only allowances and reliefs given at marginal rates. Fewer than 10,000 basic rate taxpayers would become higher rate taxpayers.
The estimates do not take account of any behavioural effects which might result from the introduction of such a limit.