HC Deb 01 February 1982 vol 17 cc19-23W
Mr. Rooker

asked the Chancellor of the Exchequer if he will publish in the Official Report in some convenient form a comparison of the current income tax rates of the member States of the European Economic Community, showing at what levels of income income tax becomes payable and at what rate, giving sterling equivalents, and showing separately the effects of income tax alone and the

Income tax thresholds and starting rates of Income tax and of Income Tax and social security contributions.
Single Person
Belgium Denmark France Germany Ireland Italy Luxembourgs Netherlands United Kingdom
Bfr Kr F DM £ L Lfr FL £
1977 (1977/78)
Threshold in national currency 117,660 14,600 18,436 5,622 729 1,380,000 123,410 9,115 946
Threshold in £ sterling 1,870 1,390 2,145 1,390 729 890 1,960 2,120 946
Rate of income tax per cent. 13.6 14.4 10.8 22 20 10 18.45 19.2 34
(14.4) (38.6)
Rate of income tax and social 22 18.6 18.3 34.6 21 17.45 28.2 34 39.75
security contributions per cent. (22.7) (42.8)
1978 (1978/79)
Threshold in national currency 131,505 15,300 20,390 6,737 929 1,380,000 134,320 9,640 986

combined effects of income tax and social security contributions by the wage earner; and if he will set out similar information for 1977–78 and 1978–79.

Mr. Ridley

[pursuant to his reply, 20 January 1982, c. 133]: The information requested is given in the tables below:

The thresholds and rates shown are those for 1977, 1978 and 1981–1977–78, 1978–79 and 1981–82 in the case of the United Kingdom and the Republic of Ireland. In Belgium the 1981 rates are provisional.

Conversions to sterling were made as follows:

  • 1977: at the average exchange rate for the calendar year 1977
  • 1978: at the average exchange rate for the calendar year 1978
  • 1981: at the exchange rate prevailing in London on 31 December 1981

Such conversions may not reflect differences in purchasing power between sterling and other currencies.

The income for the married couple is assumed to be wholly employment income of the husband. Child benefits have been left out of account. It is assumed that the United Kingdom employee is contracted-in to the State pension scheme.

In computing the income tax rates and thresholds account has been taken of personal reliefs, universal minimum expenses deductions, employment income reliefs and other flat rate reliefs, as well as deductibility for income tax of social security contributions in certain countries.

The income tax rates shown are the actual rates at which employees earning income at the threshold level start paying income tax. Because of the various reliefs mentioned in note 4, these actual rates differ in many of the countries from the nominal starting rates on the statutory income tax scales.

The combined rate of income tax and social security contributions represents the actual income tax rate at the income tax threshold plus the rates of compulsory social security contributions payable by employees with income at the threshold level, adjusted—where appropriate—to take account of deductibility of the contributions for income tax.

The figures in brackets take into account local income taxes: in Belgium the local surcharge on the national income tax—at the rate payable by the vast majority of the population—and in Denmark the local income taxes in Copenhagen.

Greece has not been included in the table as it was not a member of the EEC throughout the period 1977 to 1981.

Belgium Denmark France Germany Ireland Italy Luxembourg Netherlands United Kingdom
Bfr Kr F DM £ L Lfr FL £
Threshold in £ sterling 2,155 1,440 2,370 1,750 929 845 2,200 2,320 986
Rate of income tax per cent. 15.9 14.4 10.8 18 20 10 18.45 19.2 25
(16.85) (38.6)
Rate of income tax and social 24 18.618.3 34.2 21 17.45 28.2 35.4 31.5
security contributions per cent. (24.9) (42.8)
1981 (1981/82)
Threshold in national currency 154,615 18,000 29,760 7,405 1,715 2,852,500 159,540 11,460 1,376
Threshold in £ sterling 2,120 1,295 2,730 1,720 1,430 1,2452,185 2,440 1,376
Rate of income tax per cent. 19.3 14.6 10.8 1825 9.7 12.3 16.3 30
(20.5) (40.8)
Rate of income tax and social 27.45 18.8 20.1 34.45 29.5 16.4 22.8 32.3 37.75
security contributions per cent. (28.5) (45)

Income tax thresholds and starting rates of Income tax and social security contributions.
Married Couple
Belgium Denmark France Germany Ireland Italy Luxembourg Netherlands United Kingdom
Bfr kr F DM L Lfr FL £
1977 (1977/78)
Thresholds in national currency 127,350 27,200 24,864 9,522 1,165 2,100,000 207,270 11,480 1,456
Threshold in £ sterling 2,020 2,590 2,870 2,350 1,165 1,365 3,290 2,670 1,456
Rate of income tax per cent. 12.9 14.4 7.2 22 20 10 18.45 19.2 34
(13.7) (38.6)
Rate of income tax and social 21.4 18.6 15 34.6 21 17.45 28.2 34 39.75
security contributions per cent. (22.1) (42.8)
1978 (1978/79)
Threshold in national currency 143,270 28,600 27,150 10,498 1,731 2,100,000 224,320 12,140 1,536
Threshold in £ sterling 2,345 2,700 3,160 2,725 1,731 1,290 3,680 3,000 1,536
Rate of income tax per cent. 15.1 14.4 7.2 1820 10 18.45 19.2 25
(16.1) (38.6)
Rate of income tax and social 23.3 18.6 15 34.2 21 17.45 28.2 35.4 31.5
security contributions per cent. (24.2) (42.8)
1981 (1981/82)
Threshold in national currency 185,560 34,000 39,245 12,937 (IR)2,830 4,416,500 264,540 14,295 2,146
Threshold in £ sterling 2,540 2,445 3,600 3,010 2,360 1,965 3,625 3,040 2,146
Rate of income tax per cent. 21.7 14.6 7.2 18 25 15.5 12.3 16.3 30
(23) (40.8)
Rate of income tax and social 29.4 18.8 16.8 34.45 29.5 21.8 22.8 32.3 37.75
security contributions per cent. (30.8) (45)

Income tax thresholds and starting rates of Income tax and social security contributions.
Married couple with two children
Belgium Denmark France Germany Ireland Italy Luxembourg Netherland United Kingdom
Bfr kr F DM L Lfr FL £
1977 (1977/78)
Thresholds in national currency 147,425 27,200 36,083 9,522 1,645 2,400,000 324,680 13,230 1,822
Threshold in £ sterling 2,340 2,590 4,195 2,350 1,6451,560 5,155 3,075 1,822
Rate of income tax per cent. 11.2 14.4 7.2 22 20 10 18.45 19.2 34
(11.9) (38.6)
Rate of income tax and social 19.8 18.6 15 34.6 21 17.45 28.2 34 39.75
security contributions per cent. (20.4) (42.8)
1978 (1978/79)
Threshold in national currency 163,345 28,600 40,725 10,498 2,275 2,400,000 350,320 14,090 1,736
Threshold in £ sterling 2,680 2,700 4,735 2,725 2,275 1,465 5,750 3,395 1,736
Rate of income tax per cent. 12.7 14.4 7.2 18 20 10 18.45 19.2 25
(13.5) (38.6)
Rate of income tax and social 21.2 18.6 15 34.2 21 17.45 28.2 35.4 31.5
security contributions per cent. (21.9) (42.8)
1981 (1981/82)
Threshold in national currency 240,680 34,000 58,865 12,937 3,220 4,740,700 411,540 14,295 2,146
Threshold in £ sterling 3,300 2,445 5,400 3,010 2,680 2,070 5,635 3,040 2,146
Rate of income tax per cent. 21.7 14.6 7.2 18 25 18.4 12.3 16.3 30
(23) (40.8)
Rate of income tax and social 29.4 18.8 16.8 34.45 29.5 24.5 22.8 32.3 37.75
security contributions per cent. (30.8) (45)