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Treasury

Answer

Ms Harman: To ask the Chancellor of the Exchequer what will be the level in 2040 of the single and married person's tax allowances for those over the age of 65 years if these allowances are uprated in line with (a) prices and (b) earnings; and what proportion of average earnings this would represent. [20433] Mr. Jack: [holding answer 17 March 1997]: Allowances at 1996-97 prices and the proportion of average earnings these represent are in the tables. Income tax allowances (£) in 2040-41 _________________________________________________________________________________________________. Increased in line with Prices Earnings{1} For people aged 65 to 74 Personal allowance 4,910 11,740 Married couple's allowance{2} 3,115 7,455 For people aged 75 and over Personal allowance 5,090 12,170 Married couple's allowance{2} 3,155 7,545 _________________________________________________________________________________________________. {1} Assuming a 2 per cent. real growth in earnings each year and without statutory rounding in annual increase. {2} Tax relief for these allowances is restricted to 15 per cent. Proportion of average earnings in 2040-41 which income tax allowances represent _________________________________________________________________________________________________. ased in line with Prices Per cent. Earnings Per cent. For people aged 65-74 Personal allowance 11 27 Married couple's allowance 7 17 For people aged 75 and over Personal allowance 12 28 Married couple's allowance 7 17 _________________________________________________________________________________________________.

Secondary information

Type

Written question

Reference

292 c621W; 20433

Session

1996-97

Subjects

Age Personal taxation Married people Average earnings Tax allowances Taxation

Contains statistics

Yes