Income Tax (Hansard, 10 May 1978)

§ Mr. MacGregor
asked the Chancellor of the Exchequer what estimates he has made for 1978–79 of the amount of income chargeable with tax at higher rates and the accrual of income tax payable by individuals in the United Kingdom at higher rates.

§ Mr. Robert Sheldon
It is not the practice to give an estimate of the income chargeable, but it is estimated that the total accrual of higher rate tax payable at 1978–79 income levels after taking into account the proposals in the Budget Statement would be about £2,700 million. Of this, about £1,200 million represents tax in excess of the basic rate.

§ Mr. Lawson
asked the Chancellor of the Exchequer if he will publish a table showing, for each year from 1970–71 to 1978–79, inclusive, the number of people liable to pay income tax, with working wives (a) counted as separate taxpayers and (b) not counted as separate taxpayers.

§ Mr. Robert Sheldon
, pursuant to his reply [Official Report, 4th May 1978; Vol. 949, c. 251], gave the following information:

NUMBER OF PEOPLE LIABLE TO INCOME TAX

('000)

(a) Counting earning wives as separate taxpayers (b) Counting married couples as one

1970–71 23,100 20,000

1971–72 23,400 19,700

1972–73 21,700 18,900

1973–74 23,300 19,800

1974–75 24,500 20,500

1975–76 25,400 20,900

1976–77^* 25,900 21,200

1977–78^* 24,700 20,400

1978–79^† 25,600 21,000

^* Provisional.

^† Estimated.

The increases in general allowances announced in October 1977 which anticipated the indexation requirements for 1978–79 of last year's Finance Act are reflected in the fall in numbers of tax 534W payers in 1977–78. The Budget proposal for a lower rate band, though benefiting large numbers of the lower paid, does not itself alter the number of taxpayers.

§ Mr. MacGregor
asked the Chancellor of the Exchequer what is the yield expected in 1978–79 from tax levied at each of the higher rates.

§ Mr. Robert Sheldon
, pursuant to his reply [Official Report, 27th April 1978; Vol. 948, c. 673], gave the following information:
The available figures are for accruals of tax rather than receipts. At 1978–79 income levels and after taking account of the proposals in the Budget Statement, the estimated tax accruals at the higher rates are as follows:

Rate Yield

% £m

40 320

45 265

50 220

55 270

60 215

65 225

70 220

75 305

83 650

NUMBER OF PEOPLE LIABLE TO INCOME TAX
('000)
	(a) Counting earning wives as separate taxpayers	(b) Counting married couples as one
1970–71	23,100	20,000
1971–72	23,400	19,700
1972–73	21,700	18,900
1973–74	23,300	19,800
1974–75	24,500	20,500
1975–76	25,400	20,900
1976–77^*	25,900	21,200
1977–78^*	24,700	20,400
1978–79^†	25,600	21,000
^* Provisional.
^† Estimated.