§ Lord Mackay of Ardbrecknishasked Her Majesty's Government:
What is the current estimated yield of one penny in the £ on the standard rate of income tax for Scottish taxpayers as provided for in the Scotland Act 1998; and [HL1710]
What is their estimate of the yield of one penny in the £ on the standard rate of income tax for Scottish taxpayers as provided for in the Scotland Act 1998 after the 20 pence rate has been abolished. [HL1711]
§ Lord Macdonald of TradestonIt is currently estimated for 2000–01 that the yield from a decision to increase the basic rate of income tax by one penny would be approximately plus or minus £230 million, compared with plus or minus £180 million prior to the abolition of the 20 pence rate.
§ Lord Mackay of Ardbrecknishasked Her Majesty's Government:
What would be the cost to a Scottish taxpayer who pays tax on the full tax band at the standard rate of the one penny in the £ on the standard rate of income tax as provided for in the Scotland Act 1998; and [HL1712]
What is their estimate of the cost to a Scottish taxpayer who pays tax on the full standard rate tax band of the one penny in the £ on the standard rate of income tax as provided for in the Scotland Act 1998 after the 20 pence rate has been abolished.[HL1713]
§ Lord Macdonald of TradestonPrior to the 1999 Budget changes, 1p on the basic rate of income tax in 2000–01 would have cost a Scottish taxpayer paying tax104WA on the full basic rate tax band around £239 per annum. Following the abolition of the 20p band, this maximum cost is £269.70, based on a £1,530 10p band and a £28,500 basic rate limit.