Income Tax (Hansard, 3 November 1993)

§ Mr. Dewar
To ask the Chancellor of the Exchequer if he will estimate the tax liabilities of taxpayers in 1994–95 in the income ranges(a) including and (b) excluding the effects of changes in national insurance contributions (i) under £5,000, (ii) £5,000 to £10,000, (iii) £10,000 to £15,000, (iv) £15,000 to £20,000, (v) £20,000 to £25,000, (vi) £25,000 to £30,000, (vii) £30,000 to £40,000, (viii) £40,000 to £50,000, (ix) £50,000 to £70,000, (x) over £70,000 and (xi) over £100,000, compared with what their liability would be under the indexed 1993–94 tax regime, assuming statutory indexation in 1994–95 and including measures already announced in the 1993 Budget.

§ Mr. Dorrell
Latest estimates of the average changes in income tax and national insurance contribution liabilities in 1994–95, assuming statutory indexation and inclusion of measures already announced, compared with liabilities under a statutory indexed 1993–94 regime are shown: 255W

Income Tax and National insurance contributions

Range of individual's income in 1994–95 £ Numbers gaining 000s Amount £ Numbers losing 000s Amount

Under 5,000 — — 1,600 10

5,000–10,000 1,200 18 5,700 50

10,000–15,000 480 20 5,600 130

15,000–20,000 170 20 3,800 210

20,000–25,000 80 20 2,000 260

25,000–30,000 40 20 1,200 310

30,000–40,000 40 20 1,100 480

40,000–50,000 10 20 400 500

50,000–70,000 10 20 260 510

70,000–80,000 — — 60 510

over 80,000 10 20 180 500

Total 2,100 20 21,800 170

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

§ Mr. Fisher
To ask the Chancellor of the Exchequer if he will estimate the revenue which would have accrued to the Treasury in each year since 1988 had all the income tax rates over 40 per cent. been maintained.

§ Mr. Dorrell
I refer to the reply which I gave to the hon. Member for Glasgow, Garscadden (Mr. Dewar) on 29 October,Official Report, columns 849–50.

§ Mr. Fisher
To ask the Chancellor of the Exchequer if he will estimate the revenue which would accrue to the Treasury next year if the higher rates of income tax, over 40 per cent. abolished in 1988, had been maintained.

§ Mr. Dorrell
The latest estimate of the full year revenue cost at 1994–95 income levels, assuming statutory indexation of allowances and thresholds and inclusion of measures already announced, compared with reintroduced tax rates of 45, 50, 55 and 60 per cent., is £5.2 billion. The band widths for the tax rate schedule have been calculated by uprating the corresponding parts of the 1987–88 regime by movements in the retail prices index as in the statutory indexation formula.
The estimate does not allow for any behavioural effect that might have resulted had the tax rates above 40 per cent. been retained, and does not include capital gains tax.

Income Tax and National insurance contributions
Range of individual's income in 1994–95 £	Numbers gaining 000s	Amount £	Numbers losing 000s	Amount
Under 5,000	—	—	1,600	10
5,000–10,000	1,200	18	5,700	50
10,000–15,000	480	20	5,600	130
15,000–20,000	170	20	3,800	210
20,000–25,000	80	20	2,000	260
25,000–30,000	40	20	1,200	310
30,000–40,000	40	20	1,100	480
40,000–50,000	10	20	400	500
50,000–70,000	10	20	260	510
70,000–80,000	—	—	60	510
over 80,000	10	20	180	500
Total	2,100	20	21,800	170