Taxpayers (Hansard, 30 March 1993)

§ Mr. Dewar
To ask the Chancellor of the Exchequer if he will estimate the tax liabilities of taxpayers in 1993–94(a) including and (b) excluding the effects of changes in national insurance contributions compared with what their liability would be under the indexed 1987–88 income tax regime, giving figures for the top and bottom (i) percentile, (ii) 5 per cent., (iii) decile, (iv) quintile and (v) 50 per cent. of taxpayers.

§ Mr. Dorrell
Latest estimates are given in the table.
Information for the bottom 1 per cent. of taxpayers is not available. The 1987–88 income tax regime has been 141W indexed to 1993–94 levels by reference to the statutory formula and allowing for independent taxation. For the purpose of the calculations the indexed regime of 1987–88 has been applied directly to the income base of 1993–94. In practice, retention of the 1987–88 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

§ Mr. Dewar
To ask the Chancellor of the Exchequer if he will update his answer of 25 February,Official Report, column 691, showing changes in tax and national insurance liability compared with an indexed 1987–88 tax regime, giving an estimate for 1993–94.

Mr. Donnell
Latest estimates of the average reductions in income tax liability resulting from the changes in tax rates, allowances and thresholds are in the table. The 1987–88 income tax regime has been indexed to 1993–94 levels by reference to the statutory formula and allowing for independent taxation. For the purpose of the calculations the indexed regime of 1987–88 has been applied directly to the income base of 1993–94. In practice, retention of the 1987–88 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

Average change in 1993–94 compared with 1987–88 indexed regime

Range of individual's income in 1993–94 £ Income tax £ Income tax and national insurance £

Under 5,000 60 70

5,000–10,000 170 240

10,000–15,000 260 400

15,000–20,000 340 470

20,000–25,000 430 550

25,000–30,000 500 610

30,000–40,000 430 530

40,000–50,000 920 1,010

50,000–70,000 2,400 2,480

70,000–80,000 5,130 5,200

Over 80,000 19,200 19,200

Average 400 480

Average change in 1993–94 compared with 1987–88 indexed regime
Range of individual's income in 1993–94 £	Income tax £	Income tax and national insurance £
Under 5,000	60	70
5,000–10,000	170	240
10,000–15,000	260	400
15,000–20,000	340	470
20,000–25,000	430	550
25,000–30,000	500	610
30,000–40,000	430	530
40,000–50,000	920	1,010
50,000–70,000	2,400	2,480
70,000–80,000	5,130	5,200
Over 80,000	19,200	19,200
Average	400	480