HC Deb 14 July 1988 vol 137 cc315-7W
Mr. Frank Field

To ask the Chancellor of the Exchequer if, pursuant to the answer to the hon. Member for Birkenhead,Official Report, 27 June, he will state what would be the gains if those are average incomes in each of the following categories for each tax year from 1979–80 onwards relative to the indexed 1978–79 tax system (a) the top 1 per cent., (b) the next 2 per cent. to 5 per cent., (c) the next 6 per cent. to 10 per cent., (d) the next 11 per cent. to 20 per cent., (e) the next 21 per cent. to 30 per cent., (f) the next 31 per cent. to 40 per cent., (g) the next 40 per cent. to 50 per cent. and (h) the lower 50 per cent.

Mr. Norman Lamont

Estimates are not available in the precise form requested. For each financial year 1979–80 to 1988–89 the table shows the average gain/loss per tax unit compared with the 1978–79 tax regime. All estimates are based on a provisional 1988–89 income base projected from the 1985–86 survey of personal incomes and all tax regimes are indexed to 1988–89 levels according to the statutory formula. The comparison therefore allows for budgetary changes in income tax since 1978–79 but not for changes in definition or any other factors which might affect the income base.

Income tax liability less child benefit1 as a percentage of gross income for a married man on male average earnings2
1978–79 per cent. 1988–89 per cent.
Married couple with
Two children aged under 11 14.4 11.0
Three children; two aged under 11, one aged 11–15 10.7 8.1
Four children; two aged under 11, one aged 11–15, one aged 16 or over 6.8 5.1
1 Deducting child benefit of £2.57 per child per week in 1978–79 and £7.25 in 1988–89.
2 £92.80 per week in 1978–79 and estimated at £244.70 per week in 1988–89.

The calculations assume that all income is earned income, that the wife has no earnings, and that no reliefs or allowances are claimed other than the married man's allowance.

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