§ Mr. Nicholas BennettTo ask the Chancellor of the Exchequer what information he has as to the relationship between income tax levels and tax yields in the United Kingdom and in other countries.
§ Mr. Norman LamontThe relationship between income tax levels and tax yields is a complex one, and may be affected by changes in the levels of employment, the distribution of income and the level of economic activity over a period of time. Figures for the level of taxes and income tax thresholds for the United Kingdom and a number of other OECD countries are given in the annual publication by the Inland Revenue of "International comparisons of direct tax on employment income"; tax yields are given in "Revenue statistics of OECD member countries", which is published annually by OECD. Both publications are available in the Library.
§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer what was the average income tax paid per household in 1979 and in 1986–87 in(a) current prices, (b) 1979 prices and (c) 1987 prices.
§ Mr. Norman Lamont[holding answer 18 December 1987]: Information is available only for income tax liabilities of tax units, ie single people and married couples. The figures for 1978–79 are from the survey of personal incomes of that year; 1986–87 information is based on a projection of the 1984–85 survey of personal incomes and is therefore provisional.
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Average1 income tax liability per tax unit1 Current prices Constant prices3 (As percentage of average income) 1978–79 prices 1986–87 prices £ per annum Per cent. £ per annum £ per annum 1978–79 960 20.1 960 1,850 1986–87 2,000 18.2 1,040 2,000 1 Based on 21.5 million taxpaying tax units in 1978–79 and 20.5 million taxpaying tax units in 1986–87. 2 Counting married couples as one and combining their income. 3 By reference to movements in the retail prices index.