HC Deb 14 July 1988 vol 137 c308W
41. Mr. Hardy

To ask the Chancellor of the Exchequer what is his estimate of the level of take-home pay obtained by the individuals receiving one half, one third, and two thirds of average earnings; and what were the equivalent figures two years ago.

Mr. Norman Lamont

The figures are given in the table. They are for a single person not contracted-out of SERPS.

Five major taxes have been abolished since 1979: investment income surcharge, national insurance surcharge, development land tax, capital transfer tax on most lifetime gifts and capital duty. In addition, a number of lesser imposts (such as minor stamp and excise duties) have been abolished.

Of the taxes that remain, the basic rate of income tax has been reduced in stages from 33p to 25p since 1979 while the nine higher rates running up to 83 per cent. have been replaced by a single higher rate of 40 per cent. The main personal allowances have been increased by over 25 per cent. in real terms. Only real capital gains accruing since 1982 are now taxed, at the same rates as income. Capital transfer tax has been replaced by inheritance tax; fourteen rates running up to 75 per cent. in 1979 have been replaced by a single rate of 40 per cent. now, and the threshold is more than twice as high in real terms. In the context of a major reform of company taxation, the corporation tax rate has been reduced in stages from 52 to 35 per cent. The small companies' rate has been cut from 42 to 25 per cent. The main ad valorem stamp duties were halved in 1984 and the duty on share transactions was halved again in 1986. In addition, a number of reliefs have been introduced or improved upon, in particular to foster enterprise and encourage charitable giving.

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