Income Tax (Hansard, 5 April 1995)

§ Mr. Forman
To ask the Chancellor of the Exchequer what is his estimate of the cost to the Exchequer in 1995–96 of extending the 20p band to the point at which it would become the highest marginal rate of tax(a) for half of all income tax payers and (b) for three quarters of all income tax payers. [16820]

§ Sir George Young
The full year cost at 1995–96 income levels would be about £4.3 billion for half of income taxpayers and about £7.5 billion for three quarters. These estimates do not allow for any behavioural changes which might result from the introduction of the new regime.

§ Mr. Matthew Banks
To ask the Chancellor of the Exchequer what percentage of income tax revenue was paid by those with the top 10 per cent. of incomes in each year from 1978–79 to 1995–96. [18974]

§ Sir George Young
The information requested is given in the table.

Shares of total tax liability paid by top 10 per cent.¹

Percentage

1978–79 35

1979–80 34

1980–81 35

1981–82 35

1982–83 36

1983–84 36

1984–85 38

1985–86 38

1986–87 39

1987–88 41

1988–89 42

1989–90 42

1990–91 42

1991–92 43

1992–93 44

1993–94² 44

1994–95² 44

1995–96² 44

¹ For years up to and including 1989–90 married couples are counted as one taxpayer and their incomes are combined. Following the introduction of independent taxation in 1990–91 husbands and wives are counted separately.

² Provisional.

§ Mr. Andrew Smith
To ask the Chancellor of the Exchequer if he will update the information provided to the hon. Member for Sheffield, Attercliffe (Mr. Betts) on 5 May 1994,Official Report, columns 588–92 for (a) 1994–95, (b) 1995–96, (c) 1996–97 and (d) 1997–98; and if he will revise the figures for 1992–93 and 1993–94. [17429]

§ Sir George Young
[holding answer 31 March 1995]: Available information on income tax payers is given in the table. The increases in taxpayer numbers is largely due to economic growth. In addition, the number of people in work is increasing—United Kingdom work force in employment up 174,000 between December 1993 and December 1994.
1159W

Taxpayers by marginal rate: Numbers in thousands

Marginal rate 1992–93 ¹1993–94 ¹1994–95 ¹1995–96

20 4,240 5,200 5,000 5,400

25 19,430 18,400 18,400 18,400

40 1,720 1,900 2,300 2,400

Total 25,390 25,500 25,700 26,200

¹Provisional estimates projected from the 1992–93 survey of personal incomes.

Taxpayers by marginal rate: Percentages

Marginal rate 1992–93 ¹1993–94 ¹1994–95 ¹1995–96

20 17 20 19 21

25 76 72 72 70

40 7 8 9 9

Total 100 100 100 100

¹Provisional estimates projected from the 1992–93 survey of personal incomes.

Shares of total tax liability paid by top 10 per cent.¹
	Percentage
1978–79	35
1979–80	34
1980–81	35
1981–82	35
1982–83	36
1983–84	36
1984–85	38
1985–86	38
1986–87	39
1987–88	41
1988–89	42
1989–90	42
1990–91	42
1991–92	43
1992–93	44
1993–94²	44
1994–95²	44
1995–96²	44
¹ For years up to and including 1989–90 married couples are counted as one taxpayer and their incomes are combined. Following the introduction of independent taxation in 1990–91 husbands and wives are counted separately.
² Provisional.

Taxpayers by marginal rate: Numbers in thousands
Marginal rate	1992–93	¹1993–94	¹1994–95	¹1995–96
20	4,240	5,200	5,000	5,400
25	19,430	18,400	18,400	18,400
40	1,720	1,900	2,300	2,400
Total	25,390	25,500	25,700	26,200
¹Provisional estimates projected from the 1992–93 survey of personal incomes.

Taxpayers by marginal rate: Percentages
Marginal rate	1992–93	¹1993–94	¹1994–95	¹1995–96
20	17	20	19	21
25	76	72	72	70
40	7	8	9	9
Total	100	100	100	100
¹Provisional estimates projected from the 1992–93 survey of personal incomes.