§ Mr. Ralph Howellasked the Chancellor of the Exchequer what would be the loss in revenue if the tax threshold were raised to (a) £50 a week for a single person and (b) £70 for a married couple; and if he will estimate the loss in revenue if starting from these thresholds the tax rates commenced at 5 per cent. and increased in 5 per cent. stages to a maximum of 60 per cent. with a maximum threshold of £50,000, in a manner similar to that operating in France.
§ Mr. RidleyThe loss in revenue in a full year at 1982–83 income levels would be £8¼ billion in respect of the increase in tax thresholds and an additional £10½ billion in respect of the rate structure. In estimating these74W costs, it has been assumed that the age allowances and income limit would be raised in line with the corresponding ordinary allowances; and that the first £50,000 of taxable income would be charged at rates increasing from 5 per cent. to 60 per cent. as shown in the table below. These band widths are proportionate to the (narrower) bands applicable to a single person in France. No other features of the French tax system have been adopted in estimating the above cost.
Rate (per cent) Band of taxable income (£) 5 0–150 10 151–900 15 901–3,750 20 3,751–6,000 25 6,001–8,550 30 8,551–11,200 35 11,201–13,500 40 13,501–25,200 45 25,201–36,150 50 36,151–43,500 55 43,501–50,000 60 Over 50,000