HC Deb 13 July 1977 vol 935 cc167-8W
Mr. Richard Wainwright

asked the Chancellor of the Exchequer what was the proportion of total income tax and surtax raised from (a) the top 50 per cent., (b) the top 60 per cent., and (c) the top 70 per cent. of income recipients for each year since 1971–72.

Mr. Robert Sheldon

The proportions of total income tax and surtax raised from the groups of income recipients are as follows:

Groups of Income recipients
Year Top 50per cent. Top 60per cent. Top 70per cent.
1971–72 85 91 96
1972–73 87 92 97
1973–74 84 91 95
1974–75 83 90 95
1975–76 83 90 95
1976–77 82 89 95

The figures up to and including 1974–75 are derived from the Inland Revenue Survey of Personal Incomes. Those for 1975–76 and 1976–77 are provisional estimates based upon projections of the 1974–75 survey. The surveys cover most but not all income recipients, and the proportion covered may vary from time to time with changes in the tax system. In general, most of those with incomes below the threshold for the operation of PAYE are excluded, and the percentages given relate only to those in the surveys. In calculating the numbers in each group, husband and wife are counted as one and income is taken to be the total net income as defined in Inland Revenue Statistics 1976 page 35. The percentages relate to tax payable by persons for the years shown, not to tax paid in those years.

Mr. Lawson

asked the Chancellor of the Exchequer what is the explanation of the difference between the figure of 625,000 people taken out of tax by the Budget changes, provided in the Written Answer to the hon. Member for Blaby, Official Report, 6th July, column 573, and the figure of 845,000 people taken out of tax provided by the Chancellor of the Exchequer in his Budget Statement, Official Report, 29th March, column 280.

Mr. Robert Sheldon

I will let the hon. Member have a reply as soon as possible.