HC Deb 17 March 1955 vol 538 cc133-4W
21. Mr. R. Bell

asked the Chancellor of the Exchequer what purchasing power was left to a married man with two dependent children out of a gross income of £2,000 a year after payment of tax in the years 1935, 1938, 1951, and at the latest convenient date, respectively.

Mr. H. Brooke

The table below shows the net income after tax received by a married man with two children with a gross earned income of £2,000 per annum, together with the equivalent purchasing power at 1954 prices.

Net income after tax Equivalent net income at 1954 prices
£ s. d. £
1935–36 1,698 10 0 4,280
1938–39 1,640 17 6 3,759
1951–52 1,450 0 0 1,592
1954–55 1,548 10 0 1,548

The final column has been based on the changes in the Cost of Living Index between 1935 and 1938 and in the Consumer Price Index between 1938 and 1954.

22. Mr. R. Bell

asked the Chancellor of the Exchequer at what level of income in £s sterling at their current value a married man with two dependent children began to pay the standard rate of Income Tax in 1935, 1938, 1945, 1951, 1952, 1953 and 1954, respectively.

Mr. H. Brooke

The table below shows the minimum earned income required by a married man with two children in order that any tax should be payable at the standard rate, together with the equivalent amounts after adjustment for changes in the purchasing power of the £.

Income at which tax at standard rate first became payable Equivalent amount at 1954 values
£ £
1935–36 506 1275
1938–39 544 1246
1945–46 450 667
1951–52 725 794
1952–53 1003 1036
1953–54 1003 1019
1954–55 1003 1003

The final column has been based on the changes in the Cost of Living Index between 1935 and 1938 and in the Consumer Price Index between 1938 and 1954.

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