Taxation: Income Tax

House of Lords written question – answered on 30th March 2006.

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Photo of Lord Forsyth of Drumlean Lord Forsyth of Drumlean Conservative

asked Her Majesty's Government:

Further to the Written Answer by the Lord McKenzie of Luton on 15 March (WA 229–30), for the latest year for which figures are available, what assessment they have made of the cost of unifying the age related personal allowances at the level of those aged (a) 65 to 74, and (b) 75 and over; and

Further to the Written Answer by the Lord McKenzie of Luton on 15 March (WA 229–30), for the latest year for which figures are available, what assessment they have made of the cost of unifying the age related married couples allowances at the level of those aged (a) 65 to 74, and (b) 75 and over; and

Further to the Written Answer by the Lord McKenzie of Luton on 14 March (WA 221), for the latest year for which figures are available, what assessment they have made of the number of people who are subject to income tax who have (a) one employment, and (b) more than one employment during the year.

Photo of Lord McKenzie of Luton Lord McKenzie of Luton Government Whip, Government Whip

The information requested is contained in the following table.

Policy option Yield/Cost (£ million)

(+ve is an Exchequer yield)

Increase the married couples allowance for people aged less than 75 to that for those aged 75 and over -2
Decrease the married couples allowance for those aged 75 and over to that for people aged less than 75 +3
Increase the personal allowance for 65 to 74 year olds to that for those aged 75 and over -50
Decrease the personal allowance for those aged 75 and over to that for 65 to 74 year olds +35

Note:

Married couples where the eldest partner was born before 6 April 1935 are eligible for the married couples allowance. Tax relief for this allowance is restricted to 10 per cent.

The information in the table is based upon the 2003–04 Survey of Personal Incomes projected forward to 2005–06 in line with March 2006 Budget assumptions.

Information on the number of taxpayers with more than one employment is not readily available except at a disproportionate cost. However, the Office for National Statistics (ONS) publishes information on the number of workers with a second job. The information is available on the ONS website: www.statistics.gov.uk/downloads/theme–labour/LMS–FR—HS/WebTable03.xls. The ONS figures represent a snapshot—individuals' employment pattern may vary during the year.

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