HC Deb 15 May 2000 vol 350 cc43-4W
Mr. Portillo

To ask the Chancellor of the Exchequer what percentage of tax revenues have been paid by people aged 65 years and above in each year since 1979. [121015]

Dawn Primarolo

[holding answer 5 May 2000]: It is possible to provide reliable and appropriate estimates only for income tax and capital gains tax, and only for years after 1990–91 following the introduction of independent taxation. The estimates are given in the table.

Liabilities for individual income tax and capital gains tax payers: proportion relating to those aged 65 years and above
year Percentage
1990–91 9.2
1991–92 9.1
1992–93 8.3
1993–94 7.5
1994–95 8.1
1995–96 7.9
1996–97 7.7
1997–981 8.2
1998–991 8.4
1999–20001 7.6
1Provisional

The estimates are based on the Survey of Personal Incomes, the capital gains tax assessments and Self Assessment extracts. The provisional estimates are consistent with the March 2000 Budget.

Mr. Portillo

To ask the Chancellor of the Exchequer if he will estimate the cost of increasing the age-related personal allowance for people aged(a) 65 to 74 years and (b) 75 years and over by (i) £500, (ii) £1,000, (iii) £1,500 and (iv) £2,000; and how many people would cease to pay income tax in each case. [121017]

Dawn Primarolo

[holding answer 5 May 2000]: The costs and effects of raising the age-related personal allowances in 2000–01 are shown in the tables:

Revenue effect in 2000–01
£ million
Increasing personal allowance by £500 £1,000 £1,500 £2,000
for 65–74s -150 -310 -450 -600
for 75s and over -100 -190 -270 -350

Change in taxpayer numbers in 2000–01
Thousand
Increasing personal allowances by £500 £1,000 £1,500 £2,000
for 65–74s -170 -310 -450 -600
for 75s and over -130 -240 -330 -400

The estimates are based on the Survey of Personal Incomes and consistent with the March 2000 Budget.

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