HC Deb 19 December 1988 vol 144 cc27-8W
Mr. Nigel Griffiths

To ask the Chancellor of the Exchequer what would be the projected additional yield of income tax for 1989–90 and 1990–91(a) if the higher rate tax bands as they existed before the Finance Act 1988 were to be reinstated in the 1989 Budget and (b) if the basic rate of tax were to be raised to 27p for higher rate taxpayers only.

Mr. Norman Lamont

[holding answer 8 December 1988]: Available information is given in the table. Estimates are based on a projection of the 1985–86 survey of personal incomes and are provisional. The base for the comparison is the indexed income tax regime for 1989–90 shown in table 4.1 of the Autumn Statement. Further information could be provided only at disproportionate cost. The estimates do not allow for any behavioural effects and exclude the effect of the changes on the yield of capital gains tax.

Effect on the yield of income tax of changes in basic rate and higher rate tax at 1989–90 levels of income
Full Year Yield £ million
(a) Reintroduction of 1987–88 higher rate tax bands and rates 2,160
(b) Raising of basic rate of tax to 27 per cent. for higher rate taxpayers only 550

Forward to