§ Mr. MacGregorasked the Chancellor of the Exchequer whether, on the basis of 1978–79 figures, he will estimate the revenue cost of cutting the basic rate of tax to 30 per cent., restoring the main 499W personal allowances to their real equivalent value of April 1973 and restoring the higher rate tax bands to their real equivalent values of April 1973; and if he will indicate the cost of introducing all three changes simultaneously.
§ Mr. Robert SheldonThe information is as follows:
Cost £ million Reduction of basic rate to 30 percent 1,125 Restoration of main personal allowances to real equivalent value of April 1973 1,475 Restoration of higher rate tax bands to real equivalent value of April 1973 480 The cost of introducing the three changes simultaneously would be about £3 billion at 1978–79 income levels.
Excess income per capita Level of total income £ Number of incomes above that level Excess income £ million Income tax on excess income £ million Gross of tax £ Net of tax £ (a) 10,000 320,000 1,800 1,210 32 11 (b) 15,000 105,000 880 670 16 4 (c) 20,000 46,000 530 410 9 2 The estimates are based upon the Inland Revenue's survey of personal incomes. The income covered is that which is assessable for tax purposes and therefore excludes, for example, certain imputed income and non-taxable benefits. The data are based on a sample and subject to sampling error. Married couples are counted as one.
§ Mr. Cyril Smithasked the Chancellor of the Exchequer how many taxpayers had incomes of more than £26,000 per annum in the last tax year for which such figure is available.
§ Mr. Robert SheldonAbout 23,000 in 1975–76, counting married couples as one.