HC Deb 25 May 1995 vol 260 cc713-4W
Mr. Frank Field

To ask the Chancellor of the Exchequer (1) if he will publish estimates for the revenue cost/yield in 1996–97 and for a full year of levying a new top rate of tax of(a) 30 per cent., (b) 35 per cent., (c) 45 per cent., (d) 50 per cent., (e) 55 per cent., (f) 60 per cent., and imposing it on incomes above (i) £27,825, (ii) £30,000, (iii) £40,000, (iv) £50,000, (v) £60,000, (vi) £70,000, (vii) £80,000, (viii) £90,000, (ix) £100,000 and, (x) £110,000 (xi) £120,000, (xii) £130,000, (xiii) £140,000 and, (xiv) £150,000, and assuming that where the new top rate is lower than 40 per cent., the 40 per cent. band is abolished, and where it is higher, the 40 per cent. band remains in place; [23349]

(2) if he will provide estimates for the revenue cost or yield in 1995–96 and for a full year of levying a new top rate of tax of (a) 30 per cent., (b) 35 per cent., (c) 45 per cent., (d) 50 per cent., (e) 55 per cent. and (f) 60 per cent. and imposing it on incomes above (i) £27,825, (ii) £30,000, (iii) £40,000, (iv) £50,000, (v) £60,000, (vi) £70,000, (vii) £80,000, (viii) £90,000, (ix) £100,000, (x) £110,000 (xi) £120,000, (xii) £130,000, (xiii) £140,000 and (xiv) £150,000 assuming that where the new top rate is lower than 40 per cent., the 40 per cent. band is abolished, and where it is higher, the 40 per cent. band remains in place. [23975]

Sir George Young

[holding answer 9 May 1995]: To provide all of the details sought could be done only at disproportionate cost. Therefore, the table gives available estimates showing the variation in revenue costs over the specified ranges of tax rates and bands of taxable income. These estimates do not allow for any behavioural changes that might result from the introduction of the new tax rate.

£ billion
Full year revenue cost (-)/yield (+) at 1995–96 levels1 Higher rate
Lower limit taxable income £ 30 per cent. 45 per cent. 60 per cent.
24,300 -4.7 2.4 9.3
50,000 -6.2 1.0 3.9
70,000 -6.5 0.7 2.7
100,000 -6.8 0.5 1.9
1 The figures include consequential effects on the yield of capital gains tax.

Mr. Frank Field

To ask the Chancellor of the Exchequer if he will estimate the revenue yield in 1995– 96 and in a full year of introducing an alternative minimum tax of(a) 20 per cent., (b) 25 per cent., (c) 30 per cent. and (d) 35 per cent. at the levels of income of (i) £50,000, (ii) £60,000, (iii) £70,000, (iv) £80,000, (v) £90,000, (vi) £100,000, (vii) £110,000, (viii) £120,000, (ix) £130,000, (x) £140,000 and (xi) £150,000. [24365]

Sir George Young

[holding answer 16 May 1995]: The table gives available estimates showing the variation in revenue yields over the specified ranges of tax rates and thresholds of gross income up to £100,000. Reliable estimates are not available for higher thresholds of gross income.

£ million
Full year revenue yield at 1995–96 levels Rate of minimum tax
Gross income 20 per cent. 25 per cent. 30 per cent. 35 per cent.
Over £50,000 15 60 510 2,030
Over £70,000 10 20 100 700
Over £100,000 5 10 40 250

Note:

The estimates do not take account of any behavioural effects which might result from the introduction of the new arrangements.