§ 4. Mr. A. Lewisasked the Chancellor of the Exchequer if he will give the various Surtax rates operating in 1951 which resulted in a Treasury revenue of £124,900,000 in 1951; what were the Surtax rates in 1963 which gave a return to the Treasury of revenue of £174,100,000; and what was the amount of income liable to Surtax in 1951, and in 1963, respectively.
§ Mr. Boyd-CarpenterAs the answer contains a number of figures I will, with permission, circulate it with the OFFICIAL REPORT.
§ Mr. LewisDo not the figures show that, proportionately, the wealthier sections of the population have benefited much more than the poorer sections with regard to the payment of Income Tax?
§ Mr. Boyd-CarpenterWhen the hon. Gentleman studies the somewhat complicated table of figures, I very much doubt whether he will come to that conclusion.
Mr. JoyCould not the right hon. Gentleman give a brief summary of his Answer, as his hon. Friend did to the previous Question?
§ Mr. Boyd-CarpenterWhen the right hon. Gentleman, for all his familiarity with these figures, studies them, he will appreciate why the answer to that question is in the negative.
Following are the figures:Because Surtax for a particular year is charged and becomes payable in the next year, the Surtax receipts in 1951 and in 1963 came mainly from Surtax charged for 1949–50 and 1961–62 respectively; but they included some Surtax for earlier years.
§ The Surtax rates for 1949–50 and 1961–62 are shown in the following table:—
| Slice of surtaxable income* | 1949–50 | 1961–62 | ||
| First £2,000 | Nil | Nil | ||
| £2,000–£2,500 | 2s. | 0d. | 2s. | 0d. |
| £2,500–£3,000 | 2s. | 6d. | 2s. | 6d. |
| £3,000–£4,000 | 3s. | 6d. | 3s. | 6d. |
| £4,000–£5,000 | 4s. | 6d. | 4s. | 6d. |
| £5,000–£6,000 | 5s. | 6d. | 5s. | 6d. |
| £6,000–£8,000 | 6s. | 6d. | 6s. | 6d. |
| £8,000–£10,000 | 7s. | 6d. | 7s. | 6d. |
| £10,000–£12,000 | 8s. | 6d. | 8s. | 6d. |
| £12,000–£15,000 | 9s. | 6d. | 9s. | 6d. |
| £15,000–£20,000 | 10s. | 0d. | 10s. | 0d. |
| Over £20,000 | 10s. | 6d. | 10s. | 0d. |
| * In arriving at the income subject to Surtax deductions from the taxpayer's total income were allowable for 1961–62 on account of (a) certain personal allowances due to him, to the extent that they exceeded the basic single person's allowance, and (b) the Surtax reliefs for earned incomes due under the reforms introduced by my rt. hon. Friend the Lord Privy Seal in the Finance Act 1961, i.e., the earned income relief deduction and the special Surtax "earnings allowance" due in certain cases; these were not allowable for 1949–50. |
§ The answer to the last part of the Question is £960 million (for 1949–50) and £1,200 million (for 1961–62).