Income Tax (Hansard, 14 January 1988)

§ 50. Mr. Anthony Coombs
To ask the Chancellor of the Exchequer what is the proportion of income tax revenue paid by the highest 5 per cent. of earners currently; what was the figure in 1979; and what are the absolute figures for these two fiscal years.

§ Mr. Norman Lamont
It is estimated that the top 5 per cent. of tax-paying tax units (married couples and single people) have income tax liabilities of £12.5 billion in 1987–88. This represents 29 per cent. of total income tax liabilities of about £43.1 billion. In 1978–79, the liability of the top 5 per cent. was £4.9 billion which was 24 per cent. of the total liability of £20.3 billion.

§ 54. Mr. Lewis
To ask the Chancellor of the Exchequer what has been the average annual gain in each year since 1979 to those earning over £50,000 as a result of changes in taxation.

§ 86. Ms. Armstrong
To ask the Chancellor of the Exchequer how much, on average, those earning over £50,000 a year have gained in changes in taxation since 1979.
390W

§ 94. Mrs. Clwyd
To ask the Chancellor of the Exchequer what has been the average individual cumulative gain to those earning over £50,000 a year as a result of changes in taxation since 1979.

§ Mr. Norman Lamont
The table shows the average reduction in income tax liability of taxpayers who in 1987–88 had incomes over £50,000. The figures in the first column are the reduction in liability under the tax regime for the year in question, compared with the liability under the tax regime of the previous year. The second column cumulates the changes and therefore compares each year with 1978–79. All tax regimes have been indexed to 1987–88 levels by reference to the statutory formula and applied to incomes at 1987–88 levels, projected from the 1984–85 survey of personal incomes. Estimates are provisonal.
Average reduction in income tax liability of those with income over £50,000¹

Average annual gain per tax unit Average cumulative gain per tax unit

£ £

1979–80 9,750 9,750

1980–81 -500 9,250

1981–82 -1,450 7,800

1982–83 150 7,950

1983–84 800 8,750

1984–85 1,600 10,350

1985–86 150 10,500

1986–87 100 10,600

1987–88 200 10,800

¹ Based on 150,000 single people and married couples with income over £50,000 expected to pay tax in 1987–88. All information is in terms of tax units, i.e. married couples are counted as one and their incomes combined.

§ 62. Mr. Martyn Jones
To ask the Chancellor of the Exchequer what figures he has showing the major beneficiaries of changes in direct taxation since 1979.

§ Mr. Norman Lamont
All 24.7 million taxpayers will pay less in income tax in 1987–88 than they would under the 1978–79 income tax regime, indexed to allow for movements in prices; and, compared with that indexed regime, 1.4 million people have been taken out of income tax altogether.

§ 90. Mr. Henderson
To ask the Chancellor of the Exchequer what income tax relief has been received by a taxpayer earning £50,000 each year since 1979, at 1987 prices.

§ Mr. Norman Lamont
The income tax relief received in each financial year from his main personal allowance by a married man with earned income of £50,000 and no other reliefs or allowances is as follows (amounts have been revalued at 1987–88 prices):

£

1978–79 2,660

1979–80 2,097

1980–81 2,115

1981–82 1,839

1982–83 1,869

1983–84 2,025

1984–85 2,175

1985–86 2,277

1986–87 2,277

1987–88 2,277

	Average annual gain per tax unit	Average cumulative gain per tax unit
	£	£
1979–80	9,750	9,750
1980–81	-500	9,250
1981–82	-1,450	7,800
1982–83	150	7,950
1983–84	800	8,750
1984–85	1,600	10,350
1985–86	150	10,500
1986–87	100	10,600
1987–88	200	10,800
¹ Based on 150,000 single people and married couples with income over £50,000 expected to pay tax in 1987–88. All information is in terms of tax units, i.e. married couples are counted as one and their incomes combined.

	£
1978–79	2,660
1979–80	2,097
1980–81	2,115
1981–82	1,839
1982–83	1,869
1983–84	2,025
1984–85	2,175
1985–86	2,277
1986–87	2,277
1987–88	2,277