§ Mr. Nobleasked the Chancellor of the Exchequer if he will indicate the percentage of total investment income received by those with earned incomes below £1,000, by each successive £1,000 and up 78W to £30,000, by those with earned incomes above £30,000 and by those with no earned income at all.
§ Mr. Robert SheldonI regret that information is not available analysed by the ranges of income specified in the Question. Estimates have been made, however, for 1972–73 for a smaller number of ranges:
Range of net earned income Percentage of net investment income £ Under 1,000 41 1,000–1,999 16 2,000–2,999 10 3,000–3,999 6 4,000–4,999 4 5,000–5,999 3 6,000–7,999 4 8,000–9,999 2 10,000–11,999 1 12,000–14,999 1 15,000–19,999 1 20,000 and over 1 The remaining 10 per cent was received by those with no earned income at all.
Net earned income and net investment income together constitute total net income which is defined in Inland Revenue Statistics 1974 at p.41. Earned income is as defined for income tax purposes, all other income being treated as investment income. The method of allocating deductions between earned and investment income is described at p. 173 of Inland Revenue Statistics 1974.
These estimates do not include incomes below the effective exemption limit for Income Tax (£595).