§ Mr. Chris Smith
To ask the Chancellor of the Exchequer what has been the annual reduction in income tax for a married man earning(a) £160,000 per year and (b) £260,000 per year as a result of the changes brought in by the 1988 Budget.
§ Mr. Lilley
[holding answer 12 February 1990]: A married man earning £160,000 in 1989–90 and claiming no reliefs of allowances other than the married man's allowance has income tax liability of £25,045 less than if the allowances and thresholds in 1987–88 had been indexed to 1989–90 and the tax rates had remained unchanged at 1987–88 levels. A married man earning £260,000 would have a corresponding reduction of £45,045.