§ Mr. AllenTo ask the Chancellor of the Exchequer what the income tax yield would be were all incomes below £100 zero rated, and incomes at £100 per week rated at 1 per cent., with each £4 rise in income incurring a further 1 per cent. increase in tax up to a limit of 40 per cent. tax rate for incomes of £260 per week and above.
§ Mr. LilleyAt 1990–91 levels of income, the yield in a full year under the proposed rate schedule would be some £10 billion less than under the 1989–90 income tax rates and allowances indexed by 7.7 per cent. to 1990–91.
The estimate allows for the start of independent taxation in April 1990. It is based on a projection of the 1987–88 survey of personal incomes and is therefore provisional.
§ Mr. Chris SmithTo ask the Chancellor of the Exchequer how many families with children are estimated to have taxable incomes below the income tax threshold; and what proportion this represents of all families with children.
§ Mr. LilleyIn 1989–90 it is estimated that some 1.6 million families with children have taxable incomes below the income tax threshold. These represent about 23 per cent. of all families with children. The estimates are based on a projection of the 1987 family expenditure survey and are therefore provisional.
§ Mr. WigleyTo ask the Chancellor of the Exchequer what was the total amount of income tax collected from people resident in Wales during 1988–89, or the latest year for which figures are available; and how much of this arose from payments made at(a) the standard rate and (b) the higher rate of tax.
§ Mr. LilleyThe latest available information covers residents of Wales in 1987–88 and is in terms of liabilities rather than tax collected. Total income tax was about £1.5 billion of which some £65 million was in respect of tax in excess of the basic rate.