§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer if he will give the accumulated value of unrealised gains between 1965 and 1982 which will now not be liable to taxation as a result of the Budget change.
Reductions in income lax liabilities in 1988–89 compared with the indexed 1978–79 tax regime Source of income tax reduction(+)/increase(-) Upper 50 per cent.1 Lower 50 per cent.1 Amount £ million Average per tax unit2 £ per year Amount £ million Average per tax unit2 £ per year Increase in personal allowances 3,270 310 1,930 180 Abolition of reduced rate band -1,760 -170 -1,190 -110 Decrease in basic rate 9,190 880 2,630 250 Increase in higher rate threshold 400 40 — — Abolition of higher rates above 40 per cent. 4,410 420 — — Abolition of Investment Income Surcharge 1,120 110 20 2 Total 16,610 1,590 3,380 320 In the table, the effect of each change has been calculated on the assumption that each of the previous changes has already been made. 1 Based on 20.9 million single people and married couples expected to pay tax in 1988–89 and excluding a further 1,100,000 who would pay tax under the revalorised 1978–79 regime. All information is in terms of tax units i.e. married couples are counted as one and their incomes combined. 2 By reference to the numbers paying tax in 1988–89.