§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether, further to his reply of 22 October,Official Report, columns 858–60, on income tax allowances and rates in the United Kingdom and Germany, he will publish in the Official Report comparable figures for France and Italy.
§ Mr. Norman Lamont[holding answer 29 July 1988]: The information requested is given in the tables, which are supplemented by explanatory notes.
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Table 1 Allowances and reliefs £ France a. Basic exemption (zero rate band) Single person 1,305 One-earner married couple 1,305 Two-earner married couple 1,305 b. Employment income relief: a percentage of gross pay less social security contributions Single person 1 plus 2 One-earner couple 3 Two-earner couple 4 Italy a. Employment income relief (tax credit) Single person 206.80 One-earner married couple 206.80 Two-earner married couple 413.60 b. Married person's relief (tax credit) One-earner couple 176.54 Two-earner couple where employment income of spouse does not exceed £1,261 176.54 c. Low income relief (tax credit, given where person's employment income—and that of any spouse—does not exceed £4,623.70) Single person 65.57 One-earner married couple 65.57 Two-earner married couple 131.14 d. Deduction for social security contributions and (subject to a maximum of £1,056.86) life and accident insurance premiums and various other expenses 110 per cent. (maximum relief 4,822).
220 per cent. Of balance(maximum 8,731).
3As for single person.
4For each partner: as for single person.
Notes:
1. The figures relate to 1987 to ensure comparability with the figures for Germany and the United Kingdom given in the written answer of 22 October 1987 referred to in the question.
2. Conversions to sterling have been made on the basis of OECD estimates of purchasing parity.
3. The figures relate to employment income.
4. In France and Italy child relief is also given according to the number of children.
5. In France relief is given to married couples by means of the income splitting system which reduces the tax payable by a married couple.
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Table 2 Income Tax Sales Rate per cent. Band of taxable income, £ France 0 1–1,305 5 1,306–1,364 9.6 1,365–1,617 14.49 1,618–2,557 19.2 2,558–3,288 24 3,289–4,129 28.8 4,130–4,997 33.6 4,998–5,765 38.4 5,766–9,606 43.2 9,607–13,212 49 13,213–15,628 53.9 15,629–17,778 56.8 over 17,778 Italy 12 1–2,522 22 2,523–4,623 27 4,624–11,768 34 11,769–21,015 41 21,016–2,032 48 42,033–63,049 53 63,050–126,100 58 126,101–252,204 62 over 252,204 Notes:
1. See Note 1 to Table 1.
2. See Note 2 to Table 1.