Taxation (Hansard, 14 December 1993)

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer how many people faced marginal tax rates(a) including and (b) excluding national insurance payments, of (i) over 40 per cent., (ii) over 50 per cent., (iii) over 60 per cent., (iv) over 70 per cent., (v) over 80 per cent., (vi) over 90 per cent. and (vii) over 100 per cent. in every year since 1978–79, in the United Kingdom.

§ Mr. Dorrell
Estimated numbers of taxpayers liable to income tax at rates above the basic rate are in the table. Estimates of the numbers with marginal net income deduction rates, taking account of the withdrawal of social security benefits, at or above certain levels were published in figure 19 of "Social Security: The Government's expenditure plans 1993–94 to 1995–96", Cm 2213.
575W

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer if he will estimate for 1993–94 the number of basic rate and higher rate taxpayers with earned incomes above the national insurance contributions upper earnings limit, giving figures separately for(a) husbands, (b) wives, (c) single men and (d) single women and distinguishing between pensioners and non-pensioners.

§ Mr. Dorrell
Latest estimates of individuals aged under 65 with earned incomes above the national insurance contributions upper earnings limit for 1993–94 are given in the table. About 20,000 individuals aged 65 or over have earnings above this limit.

(000s)

Individuals Basic rate Higher rate

Single males 260 260

Single females 130 80

Husbands 1,010 920

Wives 100 70

Total 1,500 1,300

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer if he will estimate for(a) April 1994 and (b) April 1995 the percentage change in after-tax incomes for each decile of the population.

§ Mr. Dorrell
The change in after-tax incomes will depend on a range of factors that will affect what happens to the gross incomes and tax payments of those in each decile and cannot reliably be estimated.

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer how many people with earnings so low that they do not pay income tax will be affected by the increases in indirect taxation announced in November's Budget.

§ Mr. Dorrell
It is estimated that there are about 3½ million individuals with some earnings who are not paying income tax. It is not possible to determine the proportion of these people who will be affected by the increases in indirect taxation announced in the November Budget.

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer how many people will be affected by his decision to reduce(a) the married couple's income tax allowance to 15 per cent. in 1994–95 and (b) mortgage interest relief to 15 per cent. from April 1995.

§ Mr. Dorrell
It is estimated that 10.3 million individuals benefiting from the married couple's allowance and related allowances in 1994–95 would be affected by the restriction of these allowances to 15 per cent. in 1995–96. The restriction of these allowances to 20 per cent. in 1994–95 will affect 9.6 million individuals. A total of 10.1 million single people and married couples will be affected by the restrictions of mortgage interest relief to 15 per cent. in 1995–96.
No account has been taken of possible behavioural changes resulting from such restrictions.

(000s)
Individuals	Basic rate	Higher rate
Single males	260	260
Single females	130	80
Husbands	1,010	920
Wives	100	70
Total	1,500	1,300