Personal Allowances (Hansard, 22 April 1998)

§ Mr. Amess
To ask the Chancellor of the Exchequer what is the(a) cost in 1998–99 and (b) full year cost of revalorising (i) the non-aged personal allowance, (ii) the personal allowance for those between 65 and 74 years and (iii) the personal allowance for those aged 75 years and over. [39291]

§ Dawn Primarolo
Estimated costs are given in the table.

£ million

Full year cost at 1998–99 income levels First year cost at 1998–99 income levels

Indexing the personal allowance:

For those aged:

Under 65 860 640

65–74 70 50

75+ 40 30

§ Mr. Amess
To ask the Chancellor of the Exchequer what estimate he has made of the full year cost of transferring from a married person to their earning spouse an unused personal tax allowance where the former cares for an elderly or dependent relative; and if he will give this figure both on the basis that the married couples allowance(a) is and (b) is not, also given in these cases. [39289]

§ Dawn Primarolo
It is not possible to provide reliable estimates.

§ Mr. Amess
To ask the Chancellor of the Exchequer (1) by what amount the real value of the under 65 years married couples allowance will have fallen between 1990–91 and(a) 1998–99 and (b) 1999–2000 taking account of the reductions in the rate at which the allowance is given and assuming that the allowance is increased in 1999–2000 in line with inflation; [39293]
(2) by how much the real value of the personal allowance will have increased between 1990–91 and (a) 1998–99 and (b) 1999–2000 assuming that it is increased in line with inflation in 1999–2000. [39292]

§ Dawn Primarolo
The information is given in the tables. These compare the level of the 1990–91 revalorised personal allowance and married couple's allowance against the actual level in 1998–99 and 1999–2000. It is assumed that allowances in 1999–2000 are indexed in line with an illustrative assumption of 3¼ per cent. given in the "Financial Statement and Budget Report", March 1998.

£

Year 1990–91 revalorised level Actual level Increase in level

Personal allowance (aged under 65)

1998–99 4,035 4,195 160

1999–2000 4,165 4,335 170

Married couple's allowance (aged under 65)

1998–99 2,310 1,900 -

1999–2000 2,390 1,970 —

621W

£

1990–91 revalorised value¹ Reduction in value

Year Lower rate taxpayer Basic rate taxpayer Higher rate taxpayer Actual value² Lower rate taxpayer Basic rate taxpayer Higher rate taxpayer

1998–99 462 531 924 285 177 246 639

1999–2000 478 550 956 197 281 353 759

¹MCA given at marginal rates.

²MCA given at 15 per cent. in 1998–99 and 10 per cent. in 1999–2000.

§ Mr. Amess
To ask the Chancellor of the Exchequer what estimate he has made of the full year cost of giving all married people the option of transferring an unused personal tax allowance to their earning spouse; and if he will give this figure both on the basis that the married couples allowance(a) is and (b) is not also given in these cases. [39288]

§ Dawn Primarolo
The full year cost in 1998–99 of allowing married couples to transfer their unused personal allowance to their spouse is estimated to be £3.2 billion. However, if couples were given the choice between transferring their unused personal allowances but losing their MCA, or keeping their MCA and not transferring, the cost would be £2.1 billion.

§ Mr. Amess
To ask the Chancellor of the Exchequer what estimate he has made of the full year cost of transferring from a married person to their earning spouse an unused personal tax allowance where that person's youngest child is(a) under five, (b) under 11 and (c) under 16 years at the beginning of the tax year; and if he will give these figures both on the basis that the married couples allowance (i) is and (ii) is not, also given in these cases. [39290]

mecu

Finance contracts signed

Country 1993 1994 1995 1996 1997 Total

UK 1,929 2,455 2,244 2,386 3,765 12,779

Belgium 372 615 665 657 1,140 3,449

Denmark 876 850 825 688 737 3,976

Germany 2,097 2,408 2,715 3,022 3,518 13,760

Greece 511 535 525 721 730 3,022

Spain 4,005 3,011 2,817 2,553 2,716 15,102

France 2,206 2,477 2,207 2,509 2,721 12,120

Ireland 388 291 327 189 207 1,402

Italy 3,362 3,100 3,453 4,121 3,517 17,553

Luxembourg - 5 79 - 96 180

Netherlands 378 400 319 766 398 2,261

Austria 73 90 242 490 555 1,450

Portugal 1,489 1,110 1,232 1,294 1,350 6,475

Finland - 60 179 302 401 942

Sweden - 15 273 847 925 2,060

£ million
	Full year cost at 1998–99 income levels	First year cost at 1998–99 income levels
Indexing the personal allowance:
For those aged:
Under 65	860	640
65–74	70	50
75+	40	30

£
Year	1990–91 revalorised level	Actual level	Increase in level
Personal allowance (aged under 65)
1998–99	4,035	4,195	160
1999–2000	4,165	4,335	170
Married couple's allowance (aged under 65)
1998–99	2,310	1,900	-
1999–2000	2,390	1,970	—

£
	1990–91 revalorised value¹		Reduction in value
Year	Lower rate taxpayer	Basic rate taxpayer	Higher rate taxpayer	Actual value²	Lower rate taxpayer	Basic rate taxpayer	Higher rate taxpayer
1998–99	462	531	924	285	177	246	639
1999–2000	478	550	956	197	281	353	759
¹MCA given at marginal rates.
²MCA given at 15 per cent. in 1998–99 and 10 per cent. in 1999–2000.

mecu
		Finance contracts signed
Country	1993	1994	1995	1996	1997	Total
UK	1,929	2,455	2,244	2,386	3,765	12,779
Belgium	372	615	665	657	1,140	3,449
Denmark	876	850	825	688	737	3,976
Germany	2,097	2,408	2,715	3,022	3,518	13,760
Greece	511	535	525	721	730	3,022
Spain	4,005	3,011	2,817	2,553	2,716	15,102
France	2,206	2,477	2,207	2,509	2,721	12,120
Ireland	388	291	327	189	207	1,402
Italy	3,362	3,100	3,453	4,121	3,517	17,553
Luxembourg	-	5	79	-	96	180
Netherlands	378	400	319	766	398	2,261
Austria	73	90	242	490	555	1,450
Portugal	1,489	1,110	1,232	1,294	1,350	6,475
Finland	-	60	179	302	401	942
Sweden	-	15	273	847	925	2,060