§ 15. Mr. Wardasked the Chancellor of the Exchequer what is his latest estimate of the revenue to be raised by investment income surcharge in 1983–84.
§ Mr. WardIs my hon. Friend aware that this tax bears particularly hard on the elderly, many of whom have saved from taxed income to make investments but who find in their old age that they are caught by the investment income surcharge, which considerably reduces their financial resources? May we look forward to the Chancellor listening sympathetically to the representations that have been made to him?
§ Mr. MooreMy hon. Friend is right, in that of the approximately 270,000 taxpayers forecast to pay the investment income surcharge, about 150,000 are elderly and provide about half of the yield. Of the 150,000 elderly liable taxpayers, 90,000 are otherwise liable to tax only at the basic rate. I cannot, of course, anticipate my right hon. Friend's Budget.
§ Mr. RookerFor the sake of accuracy, will the Minister tell the House what income a person requires before he pays investment income surcharge?
§ Mr. MooreI accept that it is in excess of £7,000, but, as my hon. Friend said earlier, to the extent that most of them have saved throughout their working lives, his point is legitimate, as the impact of the surcharge can be at rates as high as 75 per cent.
§ Mr. StokesIs the Minister aware that the tax is a very un-Conservative one and causes offence to many of our supporters?
§ Mr. MooreI hear what my hon. Friend says. There are many other claims on the Chancellor's attention when he comes to consider his Budget, which I cannot anticipate.