HC Deb 04 February 1998 vol 305 c712W
Mr. Gibb

To ask the Chancellor of the Exchequer, pursuant to his answer of 25 November 1997,Official Report, column 468, on income tax, how many people would have a marginal rate of income tax of l0p in the pound, in each band, on the assumption that the 10p rate did not apply to savings income which would remain taxable at 20 per cent. and 40 per cent. [26726]

Dawn Primarolo

[holding answer 30 January 1998]: Estimates for 1997–98 are given in the table. They assume that the l0p rate band does not apply to savings income.

New 10p starting rate on first (£) Number of taxpayers who would face a marginal rate of 10 pence (million)
500 0.2
1,000 0.3
1,500 0.4
2,000 0.6
2,500 0.7
3,000 0.8
4,000 1.1
5,000 1.4
6,000 1.7

Mr. MacShane

To ask the Chancellor of the Exchequer what is the cost of revalorising the personal allowance; and what increase in the(a) married couples' allowance and (b) lone parents' additional personal allowance could be achieved for such a sum. [26913]

Dawn Primarolo

Indexing the non aged personal allowance and aged personal allowance is estimated to cost £960 million in 1998–99. The same amount could be spent on a package which increased the non aged married couple's allowance, the additional personal allowance and the widow's bereavement allowance by £570, the married couple's allowance for those aged 65–74 by £1,000 and the married couple's allowance for those aged 75 and over by £1,010.

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