§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer what would be the revenue raised from introducing a minimum tax equivalent to 20 per cent. of gross income on all individuals whose gross incomes from all sources exceed £25,000 a year; and how many units' total income tax liability is currently less than this figure.
§ Mr. Lilley
At 1990–91 levels of income, a minimum tax equivalent to 20 per cent. of gross income on all individuals whose gross incomes for tax purposes exceeds £25,000 per annum is estimated to yield about £i billion per annum. About 1 million individuals would have a higher tax liability under this proposal.
Estimates are provisional and are based on a projection of the 1987–88 survey of personal incomes, assuming indexation of allowances and the basic rate limit consistent with the Autumn Statement.