§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing for (a) two-earner families with a wife's earnings election and (b) other higher-rate taxpayers by tax category, his estimate of the number and distribution of incomes, together with the average unearned income and average amount of mortgage interest relief in each income band in each category in the current financial year; and if he will add a table showing the gains and losses to the Exchequer from the application of separate taxation of husbands and wives as proposed for 1990.
§ Mr. Norman Lamont[holding answer 29 July 1988]: Provisional estimates for 1988–89 based on a projection of the 1985–86 survey of personal incomes are given in the table. Estimates of the effects of the introduction of independent taxation in 1990–91 were given in the Inland Revenue press release on independent taxation issued on 15 March 1988.
933W
Higher rate taxpayers1 with wife's earnings election 1988–89 Total income (lower limit) Number with investment income with mortgage interest relief Number Average amount Number Average amount £ p.a. 000s 000s £ p.a. 000s £ p.a. 20,000 — — — — — 25,000 — — — — — 30,000 13 12 2,200 8 1,400 35,000 35 34 2,500 24 2,300 40,000 44 42 2,700 32 2,700 50,000 69 66 9,800 48 2,800 All 161 154 5,700 112 2,600 1 Married couples and single people.
Higher rate taxpayers—single people 1988–89 Total income (lower limit) Number with investment income with mortgage interest relief Number Average amount Number Average amount £ p.a. 000s 000s £ p.a. 000s £ p.a. 20,000 32 30 8,200 4 1,100 25,000 63 52 7,700 26 2,400 30,000 35 30 10,000 17 2,500 35,000 20 16 10,900 8 3,000 40,000 19 16 14,600 9 2,800 50,000 32 24 34,200 12 2,900 All 200 168 13,000 75 2,500
Higher rate taxpayers—Married couples with wife's earnings and no earnings election 1988–89 Total income (lower limit) Number with investment income with mortgage interest relief Number Average amount Number Average amount £ p.a. 000s 000s £ p.a. 000s £ p.a. 20,000 1 1 5,100 — — 25,000 140 128 2,500 75 1,300 30,000 169 157 2,300 142 2,600 35,000 62 58 3,500 51 2,800 40,000 45 43 5,600 32 2,800 50,000 49 48 15,100 34 3,000 All 466 435 4,300 334 2,400
Higher rate taxpayers—Married couples without wife's earnings 1988–89 Total Income (lower limit) Number with investment income with mortgage interest relief Number Average Amount Number Average Amount £ p.a. 000s 000s £ p.a. 000s £ p.a. 20,000 12 11 4,400 3 500 25,000 84 68 3,100 48 2,200 30,000 72 58 3,500 51 2,600 35,000 54 49 5,200 41 2,800 40,000 56 50 6,600 38 2,700 50,000 76 70 15,300 51 3,000 All 353 307 6,900 233 2,600
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will publish in theOfficial Report tables showing by range of total income up to a lower limit of £100,000, for those above and those below pensionable age and distinguishing between single persons, one-earner and two-earner married couples, the estimated saving to the Exchequer of abolishing all allowances and reliefs other than the basic single and married allowances; and if he will provide similar tables on the 1990 basis of separate taxation of husbands and wives.
§ Mr. Norman Lamont[pursuant to his reply, 28 July 1988, c. 506]: The total direct revenue yield from 934W abolishing all income tax allowances (other than the basic single and married allowances) and reliefs cannot be estimated reliably. Available estimates of the direct revenue yield in a full year at 1988–89 income levels of abolishing some specified tax reliefs and allowances other than the single, married man's, and wife's earned income allowancess are in the table. Estimates are based on a projection of the 1985–86 survey of personal incomes and are therefore provisional. Estimates do not allow for any behavioural changes that might occur.
935WThe introduction of independent taxation of husband and wife will not affect the estimates for single taxpayers. Changes to the figures for married couples cannot be estimated reliably.
Direct revenue yield at 1988–89 income levels of abolishing income tax reliefs and allowances1 Under 65 years 65 years and over All Married couples Married couples Income (lower limit) Single Without wife's earnings With wife's earnings Single Without wife's earnings With wife's earnings £'000 £ million £ million £ million £ million £ million £ million £ million 0 60 10 — 100 10 — 180 5 450 200 100 80 120 70 1,020 10 550 540 520 15 15 20 1,660 15 180 340 760 5 5 10 1,290 20 110 180 600 5 900 25 60 120 370 5 560 30 80 220 610 10 10 10 940 50 60 190 290 10 10 560 All 1,550 1,800 3,250 210 170 130 7,110 1 Estimates assume that tax reliefs for the following are abolished: mortgage interest, retirement annuity premiums, employees superannuation contributions, the business expansion scheme and donations to charities; and that all tax allowances other than the basic single allowance, the basic married man's allowance, and the wife's earned income allowance are also abolished.