§ SIR EDGAR VINCENT (Exeter)To ask Mr. Chancellor of the Exchequer if he can state the amount which one penny on the Income Tax has brought in in each of the following years—1880, 1890, 1900, and 1902, the figures for each year being corrected to an identical basis.
(Answered by Mr. Ritchie.) The actual figures in round thousands have been as follows:—Year to 5th April 1880, £1,846,000; 1890, £2,141,000; 1900, £2,353,000; 1902, £2,531,000. In order to adjust the figures of 1900 and 1902 to the same basis as those of 1880 and 1890, it would be necessary to take into account the amount of income relieved from taxation by the Finance Acts of 1894 and 1898, either by way of exemption or abatement. It is not 1075 possible to make any accurate estimate of the amount relieved by way of exemption, I can only say that it has been considerable. But an estimate can be made of the income relieved by way of abatement. The following statement shows the relief allowed in each of the years under the heads referred to:— 1880, 1890, Abatements, £120 on incomes from £150 to £400; 1900, 1902, £160 on incomes exceeding £160 but not exceeding £400; £150 on incomes exceeding £400 but not exceeding £500; £120 on incomes exceeding £500 but not exceeding £600, and £70 on incomes exceeding £600 but not exceeding £700. In respect of repairs: One-eighth of the annual value of "lands," one-sixth of the annual value of "houses." Under these several heads income which would have paid tax in 1880 and 1890 has in 1900 and 1902 been relieved from tax to the following amounts per penny:— 1899–1900, £235,000; 1901–1902, £259,000. Accordingly the actual figures as given above would, if adjusted in respect of abatements, only stand as follows:— Year to 5th April, 1880, £1,846,000; 1890,£2,141,000; 1900, £2,588,000; 1902, £2,790,000. If the additional amount of income relieved by exemption could be calculated, a further substantial addition would be required on the figures of the two later years.