§ Dr. Lynne JonesTo ask the Chancellor of the Exchequer what is the total revenue forgone as a result of the married man's tax allowance in the last financial year for which figures are available, attributed to(a) families with children, (b) childless couples where both are in work and (c) childless couples with only one partner in work. [31603]
§ Mr. JackThe estimated full year revenue cost of the married couple's allowance at 1996–97 income levels is about £3.3 billion. This includes the cost of related allowances—the additional personal allowance and the widow's bereavement allowance. A detailed breakdown of the cost is given in the following table. The estimates are based on a projection of the 1993–94 survey of personal incomes and the 1994–95 family expenditure survey in line with assumptions in the Budget forecast. Employment income is taken to include income from employment and self-employment.
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Analysis of the cost of the married couple's and related allowance Cost at 1996–97 income levels £ million Married couples where both partners are aged under 65 and:— Both are paying tax, both have employment income1 —with children 570 —without children 800 One spouse pays tax, other spouse has employment income but does not pay tax —with children 250 —without children 180 One spouse pays tax, other spouse has no employment income —with children 370 —without children 310 Married couples with at least one partner aged 65 or over 580
Analysis of the cost of the married couple's and related allowance Cost at 1996–97 income levels £ million Individuals in receipt of the APA 220 Individuals in receipt of the WBA 20 1 There are a few couples where both spouses are paying tax, but only one spouse has income from employment and the other spouse pays tax on investment income. These are included in this group.