§ Mr. Newtonasked the Chancellor of the Exchequer what would be the equivalent now, allowing for the rise in the retail price index, of the £5,000 threshold for higher rates of income tax established in the Budget of April 1973; what would then be (a) the loss of revenue if the starting point were raised to that figure and the other higher rate bands were lifted by the same monetary amount and (b) the loss of revenue if the figures determining the higher rate bands were raised by the same percentage amount.
§ Mr. Robert SheldonOn the basis of the increase in the retail price index between April 1973 and December 1976 the equivalent now to a threshold of £5,000 in April 1973 would be one of just over £9,100. At 1976–77 income levels and rates of tax the costs required would be (a) £480 million and (b) £580 million.
§ Mr. Newtonasked the Chancellor of the Exchequer what would be the cost in revenue if the £5,000 threshold for higher rates of tax were raised to £5,750 and the other higher rates thresholds were raised (a) by £750 and (b) by 15 per cent.
§ Mr. Robert SheldonAt 1976–77 income levels and tax rates about £140 million and £185 million, respectively.
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§ Mr. MacGregorasked the Chancellor of the Exchequer by how much the starting point of £5,000 for the higher rates of tax would have to be raised to take account of inflation in order to retain its same real value as at March 1974 and March 1972, respectively.
§ Mr. Robert SheldonOn the basis of the increases in the retail price index up to December 1976 about £8,190 and £10,050, respectively.