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Written question asked by Ed Balls (Labour) on Tuesday, 5 April 2011, in the House of Commons. It was due for an answer on Tuesday, 26 April 2011. It was answered by David Gauke (Conservative) on Tuesday, 26 April 2011 on behalf of the Treasury.

Income Tax

Question
To ask the Chancellor of the Exchequer if he will estimate (a) the number of people who would pay less tax as a result of and (b) the cost to the Exchequer arising from increasing the income tax personal allowance to £8,205 immediately and then in £100 increments to £10,005 in 2013-14 with the same threshold levels in 2014-15 and 2015-16.
Answer

The Exchequer costs of increasing the personal allowance can be approximated from Table 1.6 ““Direct effects of illustrative tax changes””, available on the HM Revenue and Custom's website at:"http://www.hmrc.gov.uk/stats/tax_expenditures/table1-6.pdf"Budget 2011 announced that the personal allowance for under 65s will increase by a further £630 to £8,105 in 2012-13, reducing income tax for 25 million individuals. A similar number of individuals would benefit from further increases in the personal allowance, consistent with the Government's objective to support lower and middle income earners by raising the personal allowance to £10,000, with real terms progress towards that goal every year.

Secondary information

Type
Written question
Reference
52143; 527 c322W
Session
2010-12
Subjects
Income tax Tax rates and bands
Contains statistics
Yes
Link
View this Written question on www.publications.parliament.uk