Mr. Robert AinsworthTo ask the Chancellor of the Exchequer (1) what would be the cost, in respect of tax revenues forgone, of disregarding one-off payments for long-term care insurance from the current 451W limits which apply to tax-free capital lump sums taken on retirement; [88]
(2) what would be the cost of making payments for long-term care insurance tax deductible; [89]
(3) what estimate he has made of the current cost of (a) men and (b) women of long-term care insurance bought in a one-off payment upon retirement. [171]
§ Mr. JackIt would not be appropriate for me to comment on tax matters at this stage of the Budget cycle.
Mr. AinsworthTo ask the Chancellor of the Exchequer if he will estimate the direct revenue yield in a full year at 1995–96 levels of income from restricting
£ million Basic Rate Restriction to: 20 per cent. 15 per cent. Effect of restricting Yield Numbers affected Yield Numbers affected Yield Numbers affected (a) Personal allowances 1,400 3.2 5,700 26.1 10,600 27.9 (b) Relief for pension contributions 720 1.9 1,410 11.9 2,130 12.9 (c) Other reliefs 160 0.7 1n/a n/a n/a n/a 1 Information on reliefs given at source is not available from the survey of personal incomes so it is not possible to estimate the effect to restricting other reliefs to 20 per cent. or 15 per cent.
§ Mr. HunterTo ask the Chancellor of the Exchequer how much income tax was raised in the financial year 1978–79; and what percentage came from the top rate of income tax and from tax on investment income. [126]
§ Mr. JackThe total income tax liability in 1978–79 is estimated to have been £20.3 billion. The other information requested is not readily available. Detailed analytical tables showing the distribution of incomes and of income tax were published in "The Survey of Personal Incomes 1978–79", a copy of which is in the library.
Mr. AinsworthTo ask the Chancellor of the Exchequer what would be the effect on the number of taxpayers in the financial year 1996–97 and on the number of higher rate taxpayers of(a) indexation, (b) raising the main personal allowances by five per cent. more than indexation, and (c) raising personal allowances by 10 per cent. more than indexation, giving figures separately for each main allowance and a total for main allowances. [81]
§ Mr. JackEstimates based on statutory indexation and with income levels projected to 1996–97 levels using the summer economic forecast are as follows.
452W
Estimated number of income taxpayer 1996–97 Millions Total Of which higher rate taxpayers (a) Indexation 25.9 2.2 (b) (i) Increasing personal allowance for those aged under 65 by 5 per cent. more than indexation 25.6 2.2 (ii) Increasing personal allowance for those aged 65 or over by 5 per cent. more than indexation 25.7 2.2 (a) personal allowances, (b) relief from pension contributions and (c) other reliefs, to relief at 25, 20 and 15p, giving in each case the numbers of people affected. [82]
§ Mr. JackEstimated full-year yields at 1995–96 income levels based on a projection of the 1993–94 survey of personal incomes and other survey data in line with the assumptions in the summer economic forecast are given in the table. The figures do not take account of any behavioural effects which might result from the introduction of such changes, and show the yield from restricting each allowance or relief separately. If two or more were restricted the total yield would be greater than the sum of the individual figures.
Estimated number of income taxpayer 1996–97 Millions Total Of which higher rate taxpayers (iii) Increasing all personal allowances by 5 per cent. more than indexation 25.5 2.2 (c) (i) Increasing personal allowance for those aged under 65 by 10 per cent. more than indexation 25.4 2.2 (ii) Increasing personal allowance for those aged 65 or over by 10 per cent. more than indexation 25.6 2.2 (iii) Increasing all personal allowances by 10 per cent. more than indexation 25.1 2.2