§ Mr. PearsonTo ask the Chancellor of the Exchequer (1) what would be the full-year yield of restricting income tax relief at each marginal rate; [24926]
(2) if he will estimate the full-year yield from limiting (a) all tax reliefs claimed at the marginal rate and (b) the personal allowance to relief at (1) the basic rate and (2) the 20 per cent. rage giving in each case the number of taxpayers affected; [24934]
(3) what was the cost of tax relief for the most recent year available for deductions and reliefs listed under each of the reference numbers 303 to 317 on form X of the Inland Revenue survey of personal incomes. [24931]
§ Mr. JackEstimated full year yields at 1996–97 income levels for personal allowances, pension contribution and other reliefs are as follows. These are based on readily available information from a projection of the 1993–94 survey of personal incomes and other survey data projected in line with assumptions in the Budget forecast. The figures do not take account of any behavioural effects which might result from the introduction of such changes. If all allowances and reliefs were restricted the total yield would be greater than the sum of the individual figures.
Restriction to Basic rate 20 per cent. Effect of restricting £ million Numbers affected £ million £ million Numbers affected million Personal allowances 1,600 3.3 5,000 25.2 Relief for pension contributions 790 2.0 1,350 11.7 Other reliefs 190 0.8 n/a n/a n/a—not available. Latest estimates of the costs of deductions and reliefs from information collected in the SPI are included in tables 1.6 and B1 of "Inland Revenue Statistics 1995". In some cases the SPI, which is based on administrative date, provides only some of the required information about a relief and other data sources are also used.