§ Mr. Terry Davis
To ask the Chancellor of the Exchequer what arrangements have been made to publicise the effects of independent taxation.
§ Mr. Norman Lamont
[holding answer 29 June 1989]: A major programme of publicity for independent taxation is
Total Investment Income and Earned Income £ billion Group of Income Tax Payers 1988–89 1989–90 Investment Income Earned Income Investment Income Earned Income Top 1 per cent. 4.3 14.7 5.0 16.0 Top 5 per cent. 8.2 43.0 9.7 46.9 Top 10 per cent. 10.5 69.0 12.5 75.1 Top 20 per cent. 13.7 108.8 16.5 118.5 Top 25 per cent. 14.9 125.6 18.0 136.6 Bottom 70 per cent. 10.2 119.5 12.4 129.4 Bottom 50 per cent. 6.6 69.4 8.0 74.8 All taxpayers 26.1 260.2 31.7 282.1
already under way. The first stage of the programme began in March and April this year to coincide with the issue of about 1 million extra tax returns for 1989–90. These returns will help the Inland Revenue divide married couples' income and tax reliefs correctly for the new system. Each return was accompanied by special message briefly outlining independent taxation and its effects and explaining the importance of completing the returns. Posters about the returns and independent taxation were also displayed in post offices, libraries and other locations. The Inland Revenue has published four new leaflets about the new system to give general guidance to taxpayers. These leaflets are available from tax offices and tax inquiry centres.
Further publicity is planned during the coming months and will focus on ensuring that taxpayers, particularly married women, are aware of the change and its implications for them.