§ Mr. Ralph Howellasked the Chancellor of the Exchequer what is the total net tax liability in the current financial year of (a) a childless married couple paying £2,000 mortgage interest and where the husband earns £4,500 and his wife £3,500 and (b) a married couple with two children under 11 years paying £1,000 mortgage interest, where the father earns £8,000.
§ Mr. Robert Sheldon:The tax liabilities for 1977–78, taking account of the Chancellor's proposals of 26th October 1977, would be £1,224 and £1,761, respectively.
§ Mr. Newtonasked the Chancellor of Exchequer if he will provide a series of figures showing, for the last 10 years, the number of persons in the United Kingdom liable to income tax, taking married couples as separate individuals where appropriate.
§ Mr. Robert Sheldon:The figures are as follows:
Year No. of taxpayers (000's) 1967–68 23,300 1968–69 24,250 1969–70 23,800 1970–71 23,150 1971–72 23,400 1972–73 21,750 1973–74 23,300 1974–75 24,500 1975–76 25,300* 1976–77 25,650* Married couples are counted as two individuals when the husband pays tax and the wife also pays tax on her earnings.
§ Mr. Newtonasked the Chancellor of the Exchequer to what levels the higher rate of income tax levels would need to be raised in order to maintain their real value at April 1973; and what the increases would cost in terms of revenue.
§ Mr. Robert Sheldon:On the basis of the change in the retail prices index 184W between April 1973 and September 1977—the latest date available—the comparable thresholds of taxable income would be as follows:
1973–74 Revalorised equivalent£ £ £ 5,000 10,079 6,000 12,095 7,000 14,111 8,000 16,127 10,000 20,159 12,000 24,191 15,000 30,239 20,000 40,318 The number of bands of taxable income in 1973–74 was one less than in 1977–78 and the highest rate was 75 per cent. If this system was substituted for the present system with the thresholds as above, the estimated cost for 1977–78 would be about £600 million.