Income Tax (Hansard, 20 July 1990)

HC Deb 20 July 1990 vol 176 cc736-7W 736W

§ Mr. William Powell
To ask the Chancellor of the Exchequer what is his estimate of the amount of income tax the Exchequer would forgo in 1990–91 if the threshold 737W for the starting point for the higher rate of income tax were raised to (a) £30,000, (b) £40,000, (c) £50,000, (d) £60,000, (e) £70,000, (f) £80,000, (g) £90,000 and (h) £100,000.

§ Mr. Ryder
Estimates are as follows:

Increases to the basic rate limit from £20,700

New basic rate limit £ Direct revenue cost¹ £ billion

30,000 1.6

40,000 2.5

50,000 3.0

60,000 3.3

70,000 3.5

80,000 3.7

90,000 3.8

100,000 3.9

¹ for a full year at 1990–91 projected levels of income

The estimates are based on a projection of the 1987–88 survey of personal incomes and are therefore provisional, the estimates for basic rate limits above £70,000 being particularly tentative.

Increases to the basic rate limit from £20,700
New basic rate limit £	Direct revenue cost¹ £ billion
30,000	1.6
40,000	2.5
50,000	3.0
60,000	3.3
70,000	3.5
80,000	3.7
90,000	3.8
100,000	3.9
¹ for a full year at 1990–91 projected levels of income