asked the Minister for Finance the estimated revenue foregone for each year 1977-87 by personal interest relief, personal income tax allowances, other corporate tax allowances, child tax allowance, mortgage interest relief, VHI tax relief and capital allowances.
Written Answers. - Tax Allowances.
86.
The following table sets out the information requested in so far as it is available:
Estimated cost to the Exchequer.
|
Allowance or Relief |
1977-78 |
1978-79 |
1979-80 |
1980-81 |
1981-82 |
|
£m |
£m |
£m |
£m |
£m |
|
|
Personal income tax allowances: |
|||||
|
Married |
152.3 |
247.0 |
363.0 |
352.8 |
358.8 |
|
Single |
106.5 |
144.8 |
217.0 |
221.0 |
228.0 |
|
Widowed |
8.8 |
12.6 |
19.0 |
19.4 |
21.0 |
|
One-parent family |
— |
— |
1.0 |
3.0 |
3.8 |
|
Employee (PAYE) |
— |
— |
39.0 |
117.0 |
178.0 |
|
PRSI |
— |
— |
— |
— |
— |
|
Working Wife |
5.9 |
6.5 |
7.6 |
— |
— |
|
Interest relief |
|||||
|
Mortgage |
22.0 |
27.0 |
20.0 |
24.0 |
37.0 |
|
Other* |
10.0 |
12.0 |
18.0 |
||
|
Child |
55.0 |
53.0 |
52.0 |
53.4 |
58.5 |
|
Medical insurance (VHI) |
3.0 |
4.0 |
5.0 |
6.0 |
6.5 |
|
Capital allowances* |
44.0 |
60.0 |
90.0 |
116.6 |
143.1 |
|
Other corporation tax reliefs and allowances: |
|||||
|
Export sales relief |
32.0 |
53.0 |
86.0 |
92.9 |
106.1 |
|
`Shannon' relief |
5.0 |
5.0 |
8.0 |
10.0 |
10.0 |
|
Manufacturing profits |
Nil |
||||
|
—reduced rate of tax* |
— |
— |
— |
— |
(1981) |
|
Stock relief* |
9.0(1977) |
13.5(1978) |
10.0(1979) |
5.0(1980) |
10.5(1981) |
|
Reduced rate of tax Corporation tax for small companies* |
Not available |
4.5(1978) |
5.0(1979) |
5.5(1980) |
7.0(1981) |
|
`Section 84' loans |
1.0(1977) |
1.3(1978) |
1.7(1979) |
5.0(1980) |
7.9(1981) |
|
Allowance or Relief |
1982-83 |
1983-84 |
1984-85 |
1985-86 |
1986-87 |
|
£m |
£m |
£m |
£m |
£m |
|
|
(Provisional) |
(Provisional) |
||||
|
Personal income tax allowances: |
|||||
|
Married |
501.8 |
515.8 |
673.4 |
705.1 |
737.9 |
|
Single |
315.0 |
315.0 |
389.6 |
410.5 |
423.3 |
|
Widowed |
33.1 |
33.1 |
48.7 |
52.0 |
54.2 |
|
One-parent family |
7.0 |
7.8 |
9.8 |
11.2 |
11.2 |
|
Employee (PAYE) |
201.2 |
204.2 |
210.6 |
209.4 |
239.4 |
|
PRSI |
83.8 |
80.9 |
82.5 |
82.6 |
81.1 |
|
Working Wife |
— |
— |
— |
— |
— |
|
Interest relief: |
|||||
|
Mortgage |
55.0 |
80.0 |
117.0 |
145.3 |
150.5 |
|
Other* |
20.0 |
24.0 |
13.0 |
— |
— |
|
Child |
29.1 |
29.8 |
30.5 |
31.4 |
2.0 |
|
Medical insurance (VHI) |
10.0 |
19.5 |
24.5 |
30.7 |
35.6 |
|
Capital allowances* |
183.7 |
218.2 |
244.0 |
284.5 |
310.0 |
|
Other corporation tax reliefs and allowances: |
|||||
|
Export sales relief |
96.3 |
301.1 |
194.4 |
422.9 |
377.8 |
|
`Shannon' relief |
10.5 |
22.0 |
40.2 |
56.8 |
29.0 |
|
Manufacturing profits |
91.7 |
90.1 |
95.8 |
111.3 |
123.5 |
|
—reduced rate of tax* |
(1982) |
(1983) |
(1984) |
(1985) |
(1986) |
|
Stock relief* |
12.1 |
6.5 |
5.1 |
7.0 |
0.4 |
|
(1982) |
(1983) |
(1984) |
(1985) |
(1986) |
|
|
Reduced rate of tax Corporation tax for small companies* |
8.0(1982) |
7.5(1983) |
7.3(1984) |
7.6(1985) |
8.5(1986) |
|
`Section 84' loans |
49.8(1982) |
58.1(1983) |
69.4(1984) |
76.5(1985) |
64.3(1986) |
* These estimates are very tentative and are subject to a wide margin of error.
Notes on Table
Married, single and widowed allowances
The figures show the aggregate cost of (a) the allowances granted to individuals effectively liable to tax and (b) the allowances which would have been accorded to individuals if the exemption limits did not apply to them.
Working Wife allowance
This allowance was discontinued with effect from 6 April 1980.
Loan interest relief
The breakdown of loan interest relief between mortgage and other interest is a tentative estimate. No breakdown is available prior to 1979-80. From 6 April 1985 tax relief for interest on personal borrowings is available only in the case of loans for the purchase, repair or improvement of a borrower's sole or main residence.
Child allowance
Includes the cost of the additional allowance for an incapacitated child. The drop in the cost of the child allowance for the year 1982-83 was caused by the reduction in the standard child allowance from £195 for 1981-82 to £100 for the years 1982-83 to 1985-86 inclusive. The standard child allowance was abolished for 1986-87 and subsequent years.
Capital allowances
The cost included for corporation tax is by reference to accounting periods ending in the year to 5 April immediately preceding each of the years in question (e.g. year ended 5 April 1977 relates to the column headed 1977-78).
Export sales relief and `Shannon' relief
The figures for each year include the tax relief relevant to accounting periods which ended in that year and to earlier accounting periods in so far as such relief was allowed in that year.
Manufacturing profits
These figures represent the estimated loss to the Exchequer arising from the charging of manufacturing and other qualifying profits at reduced rates of corporation tax instead of at normal rates.
Stock relief
Stock relief was not renewed in 1986 for any sector other than farming.
`Section 84' loans
These figures include preference share financing which is a minor element in the total.