Income Tax (Hansard, 27 July 1979)

§ Mr. Ralph Howell
asked the Chancellor of the Exchequer, further to his reply to the hon. Member for Norfolk, North. dated 16 July, comparing the effective rates of income tax plus social security contributions for a married couple with two children in the United Kingdom, France, Germany, the United States of America and Japan, if he will now list all the deductions for expenses, social security contributions and other reliefs permissible in each country, together with some idea of the upper limits permissible in each case.

§ Mr. Peter Rees
I regret that an answer could be provided only at disproportionate cost.

§ Mr. Marlow
asked the Chancellor of the Exchequer by how much the standard rate of income tax would be reduced if the duties paid directly to the EEC were used instead to reduce income tax.

§ Mr. Peter Rees
In accordance with the own resources decision of 21 April 1970, the general budget of the European Communities is financed, in part, from the proceeds of agricultural levies and customs duties—except those relating to products covered by the Treaty of the European Coal and Steel Community—raised in member States. The Community budget for 1979 included an estimate of 1567.7 million European units of account for the total of such levies and duties arising in the United Kingdom this year, implying a sterling equivalent of just under £1,000 million. This is approximately equal to the yield of 2p on the standard rate of income tax.

§ Mr. Eggar
asked the Chancellor of the Exchequer how many (a) one-parent 554W families and (b) two-parent families paid (i) no income tax, (ii) income tax at the rate of 25 per cent., (iii) income tax at the rate of 33 per cent. and (iv) income tax at higher rates in 1978–79; and how many in each case will pay no tax or tax in the corresponding bands in 1979–80, assuming the Finance Bill is implemented as proposed.

§ Mr. Peter Rees,
pursuant to his reply [Official Report, 24 July 1979; Vol. 971,c. 178],gave the following answer:
Estimates of the number of single persons and married couples in the United Kingdom who have children and pay income tax are as follows:

Thousands

Single persons Married couples

1978–79

(i) Non-liable Not known^*

(ii) Liable at 25 per cent. rate only 100 400

(iii) Liable at not more than 33 per cent. 400 5,600

(iv) Liable at higher rates 10 300

1979–80

(i) Non-liable Not known^*

(ii) Liable at 25 per cent. rate only 100 400

(iii) Liable at not more than 30 per cent. 400 5,800

(iv) Liable at higher rates 10 300

*The number of families not paying tax is not known exactly, although estimates are available of the total number of single persons and married couples under pensionable age and with children in Great Britain at an earlier date.

	Thousands
	Single persons	Married couples
1978–79
(i) Non-liable	Not known^*
(ii) Liable at 25 per cent. rate only	100	400
(iii) Liable at not more than 33 per cent.	400	5,600
(iv) Liable at higher rates	10	300
1979–80
(i) Non-liable	Not known^*
(ii) Liable at 25 per cent. rate only	100	400
(iii) Liable at not more than 30 per cent.	400	5,800
(iv) Liable at higher rates	10	300
*The number of families not paying tax is not known exactly, although estimates are available of the total number of single persons and married couples under pensionable age and with children in Great Britain at an earlier date.