§ Mr. GryllsTo ask the Chancellor of the Exchequer if he will estimate what the reduction in the income tax revenue would be for 1992–93 on a full-year basis and assuming no behavioural changes(a) if there were no higher rate of income tax for individuals and (b) if there were no additional rate for trusts.
§ Mr. MaudeThe costs in a full year at 1992–93 levels of income are estimated to be(a) £5.1 billion and (b) £30 million. These estimates are based on a comparison with 1991–92 tax rates and an illustrative indexation of personal allowances and the basic rate limit by 4 per cent.
No account is taken of possible behavioural changes or of any effect on receipts of capital gains tax.