HC Deb 10 December 1993 vol 234 cc395-7W

To ask the Chancellor of the Exchequer what is the average individual cumulative gain(a) in cash prices and (b) in 1993–94 prices to those earning (i) £5,000, (ii) £10,000, (ii) £15,000, (iv) £20,000, (v) £25,000, (vi) £30,000, (vii) £40,000, (viii) £50,000, (ix) £60,000 and (x) £100,000, as a result of each change in (1) income tax and (2) income tax and national insurrance, since 1979.

Latest estimates of the reduction in liability resulting from changes in national insurance and income tax rates, allowances and thresholds are in the table. The 1978–79 income tax regime has been indexed to 1993–94 levels by reference to the statutory formula and allowing for independent taxation.

 Comparison between 1993–94 and 1978–79 indexed regimes Average reduction (£) in: Range of individuals income in 1993–94(£) Income tax Income tax and national insurance contributions Under 5,000 140 170 5,000 - 10,000 380 360 10,000 - 15,000 740 630 15,000 - 20,000 1,080 820 20,000 - 25,000 1,460 960 25,000 - 30,000 1,860 1,290 30,000 - 40,000 2,240 1,670 40,000 - 50,000 3,380 2,810 50,000 - 60,000 5,760 5,210 60,000 - 70,000 8,700 8,100 70,000 - 80,000 13,000 12,400 Over 80,000 47,700 47,200 Average 1,200 1,010

I regret that a reliable analysis incomes over £100,000 is not available.

For the purposes of the calculations, of 1978–79 has been applied directly to the income base of 1993–94. In practice retention of the 1978–79 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

To ask the Chancellor of the Exchequer if he will publish a table showing the reduction in income tax in 1993–94 compared with the 1978–79 indexed regime, broken down into the top 1 per cent., 5 per cent., 10 per cent. and bottom 50 per cent. of taxpayers, showing the total reduction and the average gain.

Latest estimates on the annual reduction in income tax liability for 1993–94 compared with the 1978–79 indexed regime are given in the table. The 1978–79 regime has been indexed by reference to the statutory formula and allowing for independent taxation. For the purpose of these calculations the indexed regime of 1978–79 is applied directly to the later income base of 1993–94. In practice, retention of the regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

 Quantile group of taxpayers under the 1978–79 indexed regime Nos. of tax-payers Reduction in tax Average gain (Per cent) (Thousands) (£ million) (£) Top 1 300 9,600 35,800 Top 5 1,300 13,400 10,000 Top 10 2,700 16,000 6,000 Bottom 50 13,300 4,500 340 All taxpayers 26,700 31,800 1,200

To ask the Chancellor of the Exchequer what is the regional distribution of(a) the personal tax burden and (b) the overall tax burden.

The table shows the amount of income tax payable by region for 1991–92, the latest year for which regional information is available. Regional information for taxes overall is not available.

 Region Amount of income tax liability of residents (£ million) North 2,710 Youkshire and Humberside 4,840 East Midlands 6,360 West Midland 4,300 East Anglia 5,210 South East 28,800 South West 5,270 Wales 2,500 Scotland 5,170 Northern Ireland 1,050

To ask the Chancellor of the Exchequer how many people and what percentage of all taxpayers in(a) Great Britain and (b) Northern Ireland paid the top rate of income tax in each year since 1979.

The table provides estimates of the number of taxpayers in the United Kingdom liable to income tax at a higher rate—that is any rate above the basic rate. Prior to the introduction of independent taxation in 1990–91, married couples are counted as one unit. It is not possible for the Northern Ireland component to be reliably distinguished for each of these years separately. However, for the years pre-independent taxation, 1980–81 to 1989–90, the number of higher rate taxpayers in Northern Ireland averaged about 20,000, about 4 per cent. of all taxpayers in Northern Ireland. It is estimated that there were 22,000 higher rate taxpaying individuals in Northern Ireland in 1991–92, which is around 4¼ per cent. of all taxpaying individuals in the province.

 Taxpayers liable at higher rate, 1978–79 to 1993–941 Thousands As percentage of all taxpayers 1978–79 763 3.6 1979–80 674 3.1 1980–81 796 3.8 1981–82 1,090 5.2 1982–83 983 4.7 1983–84 860 4.2 1984–85 930 4.6 1985–86 950 4.7 1986–87 1,120 5.5 1987–88 1,190 5.7 1988–89 1,350 6.4 1989–90 1,500 7.0 1990–91 1,700 6.5 1991–92 1,620 6.2 21992–93 1,800 7.1 21993–94 1,900 7.5 1 Single people and married couples for years up to and including 1989–90, individuals from 1990–91. 2 Provisional estimates projected from the 1991–92 Survey of Personal Incomes.

To ask the Chancellor of the Exchequer if he will list for each region of the United Kingdom(a) the number of higher rate taxpayers, (b) the number of basic rate taxpayers and (c) the number that pay no national insurance or income tax.

The information shown in the table is the latest available on a regional basis and is for 1991–92.

 Thousands Region Taxpayers liable at higher rate Taxpayers liable only at basic rate Non-taxpayers aged over 16 North 50 1,220 1,190 Yorkshire and Humberside 93 2,050 1,810 North West 122 2,620 2,290 East Midlands 83 1,760 1,360 West Midlands 95 2,160 1,900 East Anglia 53 975 640 South East 832 7,780 5,480 South West 114 2,160 1,530 Wales 36 1,210 1,050 Scotland 108 2,220 1,760 Northern Ireland 22 490 670

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