HC Deb 19 October 1988 vol 138 cc921-5W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report tables showing for those above and for those below pensionable age, the estimated number of tax units paying income tax and their income tax liability in a full year at 1988–89 rates by range of total income up to a lower limit of £100,000, distinguishing between single persons, one-earner and two-earner married couples; and if he will provide corresponding information on the basis of the following rates of tax (a) single persons, £3,000 taxed at nil rate, £1,500 at 15 per cent., £1,500 at 20 per cent., £7,500 at 25 per cent., and five successive bands of £5,000 at an incremental rate of 5 percentage points to a

Number of tax units paying income tax and tax liability by range of total income 1988–89
Singles Married couple with wife's earnings Married couple without wife's earnings
Total income (lower limit) Number of units paying tax Tax yield Number of units paying tax Tax yield Number of units paying tax Tax yield
£ per annum '000s £ million '000s £ million '000s £ million
Taxpayers under 65
2,000 350 20 — — — —
3,000 800 170 — — 1— 1—
4,000 810 350 10 1— 110 10
5,000 990 650 20 10 150 50
6,000 990 880 70 10 230 120
7,000 820 890 110 40 260 180
8,000 700 920 170 90 330 290
9,000 670 1,040 190 150 320 360

maximum of 60 per cent., (b) all married persons, £3,000 exempt, £3,000 nil rate, £3,000 at 15 per cent., £3,000 at 20 per cent., £9,000 at 25 per cent., and four successive bands of £8,000 at an incremental rate of 5 percentage points to a maximum of 55 per cent., (c) the nil rate band to be reduced by one-half of the amount by which total income exceeds £7,500 and £15,000 in the case of single and married persons, respectively, on the same basis as the present age allowance and (d) all other allowances and reliefs to be abolished.

Mr. Norman Lamont

[holding answer 29 July 1988]: Provisional estimates for the 1988–89 tax regime, based on a projection of the 1985–86 survey of personal income, are given in the table. Estimates for the alternative tax regime could be produced only at disproportionate costs.

Singles Married couple with wife's earnings Married couple without wife's earnings
Total income (lower limit) Number of units paying tax Tax yield Number of units paying tax Tax yield Number of units paying tax Tax yield
£ per annum '000s £ million '000s £ million '000s £ million
10,000 890 1,630 590 580 720 1,020
12,000 760 1,750 1,060 1,590 770 1,520
15,000 400 1,270 1,660 3,780 610 1,700
20,000 230 1,120 1,470 5,460 440 1,870
30,000 70 640 480 3,460 160 1,460
50,000 20 640 100 2,300 70 1,730
Taxpayers aged 65 and over
2,000 — — — — — —
3,000 230 30 — — — —
4,000 260 80 — — — —
5,000 150 80 20 1— 120 20
6,000 110 80 20 10 130 50
7,000 80 90 40 10 70 40
8,000 50 60 50 30 80 70
9,000 50 80 40 30 40 40
10,000 80 170 80 80 50 80
12,000 60 150 70 140 50 100
15,000 60 210 110 270 50 160
20,000 50 270 70 290 30 140
30,000 20 230 20 200 30 250
50,000 10 590 10 350 10 330
1 Less than £5 million or 5,000.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report tables showing for women above and for those below pensionable age, the estimated number of tax units paying income tax in 1988–89 directly or indirectly and the estimated amount of tax payable in a full year at the marginal rate, dividing the figures to show the amounts by range of total income up to a lower limit of £100,000 and distinguishing between single persons, one-earner and two-earner married couples; and if he will include tables showing his estimate of the amount of tax which would be

Number of single females paying income tax and tax liability by range of total income 1988–89
Aged 65 and over Aged under 65
Total income Number Tax liability Number Tax liability
(lower limit) total of higher rate taxpayers total of higher rate taxpayers
£ per annum ('000) (£ million) (£ million) ('000) (£ million) (£ million)
2,000 — — — 180 10 —
3,000 170 20 — 440 90 —
4,000 190 60 — 450 190 —
5,000 100 50 — 560 360 —
6,000 80 60 — 520 450 —
7,000 60 70 — 370 390 —
8,000 30 40 — 310 410 —
9,000 40 60 — 230 350 —
10,000 50 110 — 290 530 —
12,000 40 110 — 250 570
15,000 40 140 — 120 370 —
20,000 30 170 140 80 390 210
30,000 10 150 150 20 190 190
50,000 10 490 490 10 130 130
Total 850 1,530 780 3,830 4,430 530

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report tables showing for one-earner and two-earner married couples under 65 years of age and married couples over 65 years of age the number of tax units paying less and the number paying more tax in each income band up to a lower limit of £100,000 at 1988–89 rates of tax in the event

payable by such tax units in 1988–89 on the basis of separate taxation for husbands and wives as proposed for 1990.

Mr. Norman Lamont

[holding answer 29 July 1988]: Estimates for single women are given in the tables. They are based on a projection of the 1985–86 survey of personal incomes and are provisional.

Under the present tax system a married women's income is treated as her husband's and taxed as if it belonged to him. The estimates requested of the tax liability on the income of married women under the present tax system and under independent taxation could be produced only at disproportionate cost.

of the proposed allowances for separate taxation of husbands and wives being replaced by a transferable allowance of £3,000 for each spouse; and if he will include figures of the consequential changes in tax yield.

Mr. Norman Lamont

[holding answer 29 July 1988]: I regret that the estimates requested could be provided only at disproportionate cost.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether, further to his written reply of 2 October comparing income taxation in the United Kingdom and Germany, he will give a breakdown of the 22 to 56 per cent, range of tax showing the actual rate charged on incomes of single, one-earner and two-earner couples at intervals of DM10,000 together with the corresponding rate chargeable in the United Kingdom in terms of the gross income and the taxable income, assuming the minimum allowances in both cases; and if he will add details of the corresponding social security contribution and if child benefit is payable.

Mr. Norman Lamont

[holding answer 29 July 1988]: Such information as can be produced without incurring undue cost is given in the tables, which are supplemented by explanatory notes.

Table 1
Germany
Taxable income Income tax rate per cent.
DM £ Single Married couple
18,000 4,390 22 21
28,000 6,829 32 21
38,000 9,268 39 23
48,000 11,707 45 29

Table 2
United Kingdom
Taxable income Marginal rate of income tax Income tax as a percentage of gross income Income tax and National Insurance contributions as a percentage of gross income
£ Per cent. Single One-earner married couple Two-earner married couple Single One-earner married couple Two-earner married couple
4,390 27 17.4 14.5 11.2 26.4 14.3 12.3
6,829 27 19.9 17.4 14.1 28.9 19.3 16.7
9,268 27 21.4 19.2 16.2 30.4 22.4 19.8
11,707 27 22.4 20.4 17.6 31.4 24.4 22.0
14,146 27 23.0 21.3 18.8 31.4 24.8 23.2
16,585 27 23.6 22.0 19.6 30.8 25.1 23.6
19,024 40 24.6 23.2 20.9 31.1 25.9 24.5
21,463 45 26.4 25.0 22.8 32.2 27.5 26.1
23,902 45 28.1 26.8 24.6 33.4 29.0 27.6
26,341 50 29.7 28.4 26.3 34.5 30.5 29.1
28,780 50 31.3 30.0 27.9 35.7 31.9 30.5
31,219 50 32.7 31.4 29.4 36.8 33.1 31.8

Notes:

1. The figures relate to 1987–88 to ensure compatibility with Table 1.

2. The calculations assume that all income is earned income, there are no reliefs other than the appropriate personal allowance and that in two-earner married couples no wife's earnings election has been made but the wife makes full use of the wife's earned income allowance. National Insurance Contributions are at the standard Class 1 rate for employees contracted-in to the state additional (earnings related) pension scheme. In the calculations for income tax and national insurance contributions the assumption is made that married couples have two children; child benefit is deducted accordingly, to take into account cash benefits for children.