§ Mr. Gerald Howarthasked the Chancellor of the Exchequer what is the percentage change in income tax liability for each income range in 1985–86 compared with the 1978–79 tax regime adjusted for price movements over the period.
§ Mr. MooreThe table shows the percentage reductions in tax liability calculated for the 1985–86 tax regime compared with the 1978–79 regime indexed to 1985–86 levels by reference to the statutory formula. The estimates have been calculated on the 1985–86 tax base.
Range of total income in 1985–86* £ Tax reduction as percentage of liability under 1978–79 indexed regime per cent. under 5,000 15 5,000–10,000 12 10,000–15,000 12 15,000–20,000 12 20,000–30,000 13 over 30,000 21 All taxpayers 14 * All information is in terms of tax units—that is, married couples are counted as one and their incomes combined.