HC Deb 05 June 2000 vol 351 cc75-6W
Mr. Gibb

To ask the Chancellor of the Exchequer what would be the cost to the Exchequer of raising the basic rate limit by(a) £500, (b) £1,000, (c) £1,500, (d) £2,000 and (e) £2,500; and how many people would cease paying any tax at 40 per cent. in each case. [124524]

Dawn Primarolo

The full year costs of increasing the income tax basic rate limit for 2000–01 are given in the table.

Increase basic rate limit by: Exchequer cost (£ million) Number ceasing to pay at higher rate (Thousand)
£500 240 130
£1,000 470 250
£1,500 690 350
£2,000 910 450
£2,500 1,110 540

Estimates are based on the Survey of Personal Incomes, projected in line with the March 2000 Budget.

Mr. Gibb

To ask the Chancellor of the Exchequer what would be the cost to the Exchequer of allowing a married person to transfer a wholly or partly unused tax allowance to their earning spouse(a) if they are in receipt of invalid care allowance, or if their youngest child is under the age of five years, (b) if they are in receipt of invalid care allowance, or if their youngest child is under the age of 11 years, (c) if they are in receipt of invalid care allowance, or if their youngest child is under the age of 16 years, (d) regardless of these or any other responsibilities and (e) if they are in receipt of invalid care allowance. [124522]

Dawn Primarolo

The estimated costs for 2000–01 of allowing a married person to transfer an unused personal allowance to their earning spouse are given in the following table.

Cost of allowing transfer of unused tax allowances to earning spouses
Family type Cost £ million
(a) Married couples who are either in receipt of invalid care allowance or whose youngest child is under the age of 5 850
(b) Married couples who are either in receipt of invalid care allowance or whose youngest child is under the age of 11 1,200
(c) Married couples who are either in receipt of invalid care allowance or whose youngest child is under the age of 16 1,350
(d) All married couples 2,000
(e) Married couples in receipt of invalid care allowance 30

The estimated cost of allowing a married person to transfer a personal allowance in the way most beneficial to the couple, regardless of whether it would be otherwise used, is £4,250 million.