Written Answers. - Income Tax

419.

asked the Minister for Finance (a) the cost to the Exchequer of increasing the income tax personal allowance by (1) £100 per person, (2) £200 per person, (3) £500 per person, (4) £1,000 per person; (b) the number of taxpayers which would be taken out of the net in each of the above examples; and (c) the cost to the Exchequer of increasing the income tax child allowance by (1) 10 per cent, (2) 50 per cent and (3) 100 per cent.

Following is the information requested by the Deputy:

(a) and (b) Increase in income tax personal allowances

Proposed increase

Estimated full year cost to the Exchequer

Estimated number of taxpayers who would be taken out of tax net

Single/Widowed

Married*

£

£

£m.

100

200

50

5,700

200

400

103

12,900

500

1,000

255

38,100

1,000

2,000

496

94,500

*It is assumed that any increase in the single and widowed allowances must be combined with double that increase in the allowance for married persons assessed to tax on the aggregate basis.

(c) Increase in income tax child allowance

Proposed increase

Estimated full year cost to the Exchequer

£

£m.

10% to £110

3

50% to £150

15

100% to £200

30