§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the(a) first-year and (b) full-year costs of raising the personal income tax allowance in 1997–98, in addition to price indexation, by (i) £50, (ii) £100, (iii) £150 and (iv) £200; and what is his estimate in each case of the number of individuals who as a consequence would no longer be liable to pay income tax. [3244]
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§ Mr. Jack[holding answer 11 November 1996]: Available information is given in the table.
Increase in non aged and aged personal allowances indexation £ Full year cost at 1997–98 income levels 1£million First year cost at 1997–98 income levels £million Number of taxpayers taken out of income tax thousands 50 320 240 120 100 630 470 230 150 940 710 350 200 1,250 940 450 1Based on the Summer Economic forecast and allowing for statutory indexation.
§ Mr. BruceTo ask the Chancellor of the Exchequer what is his estimate of the cost in 1997–98 of reducing the present 24p income tax band to a 20p income tax band. [3243]
§ Mr. Jack[holding answer 11 November 1996]: The estimated full-year cost at 1997–98 income levels of reducing the basic rate of tax from 24 per cent. to 20 per cent. is £6.8 billion after allowing for statutory indexation of allowances and tax band widths. This is based on the summer economic forecast.
§ Mr. AlisonTo ask the Chancellor of the Exchequer (1) if he will estimate the cost of revalorising fully the married couples allowance and the additional personal allowance to their 1990 introductory value, assuming that the allowances continue to be given at the rate of 15 per cent.; [2827]
(2) if he will estimate the cost of revalorising fully the married couples allowance and the additional personal allowance to their 1990 introductory value, assuming that the allowances were given at the taxpayers' marginal tax rate. [2825]
§ Mr. JackThe full year cost of revalorising the 1990–91 married couples allowance and the linked allowances, which include the additional personal allowance and the widows bereavement allowance, to 1996–97 levels is given in the table.
Cost in full year at 1996–97 income levels £ billion Allowances given at 15 per cent. 0.5 Allowances given at marginal rates 3.0
§ Mr. AlisonTo ask the Chancellor of the Exchequer if he will estimate the cost of allowing a married person to transfer an unused personal allowance to their spouse, on the assumption that the couple would not also be able to claim the married couples allowance. [2824]
§ Mr. JackThe estimated full-year cost of allowing personal allowances to be transferred between spouses would be about £0.5 billion at 1996–97 income levels. This assumes that the married couples allowance would be abolished, but the widows bereavement allowance and the additional personal allowance would be retained. It does not take into account any behavioural change which would result from such a measure.