Taxation (Hansard, 25 January 1991)

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer if he will estimate the change in Treasury income during the 1991–92 financial year resulting from the introduction of an alternative minimum tax of 20 per cent. of the gross incomes of individuals whose incomes exceed £40,000 a year and whose tax liability would otherwise be less than that amount.

§ Mr. Francis Maude
[holding answer 21 January 1991]: The additional income tax liability in 1991–92 would be about £50 million. This estimate does not take account of any behavioural changes which might result from the introduction of the new arrangements.

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer how much in real terms the average annual tax payments of a man with no allowances and reliefs other than the married couple's tax allowance earning(a) £5,000, (b) £10,000, (c) £15,000 and (d) £20,000 has increased or decreased since 1976–77.

§ Mr. Maude
[holding answer 21 January 19911]: Income tax for a married man as a percentage of gross income is as follows:

Income in Income tax¹

1990–91£ 1990–91 per cent. 1976–77² per cent.

5,000 1.4 3.4

10,000 13.2 19.2

15,000 17.1 24.5

20,000 19.1 27.1

¹ Assuming that the only allowances and reliefs available are the married man's allowance in 1976–77 and the personal allowance plus the married couple's allowance in 1990–91. In each case the wife is assumed to have no income.

² Calculations for 1976–77 are based on the income tax regime for that year applied to levels of income adjusted from the 1990–91 figures in line with the change in average male earnings.

Income in	Income tax¹
1990–91£	1990–91 per cent.	1976–77² per cent.
5,000	1.4	3.4
10,000	13.2	19.2
15,000	17.1	24.5
20,000	19.1	27.1
¹ Assuming that the only allowances and reliefs available are the married man's allowance in 1976–77 and the personal allowance plus the married couple's allowance in 1990–91. In each case the wife is assumed to have no income.
² Calculations for 1976–77 are based on the income tax regime for that year applied to levels of income adjusted from the 1990–91 figures in line with the change in average male earnings.