HC Deb 27 June 1996 vol 280 cc237-8W
Mr. Frank Field

To ask the Chancellor of the Exchequer how many and what proportion of taxpayers are currently paying tax in each £10,000 band of income above the current starting point for higher rate tax. [34570]

Mr. Jack

[holding answer 26 June 1996]: Available estimates for higher rate taxpayers in 1996–97 are given in the table. It is not possible to provide reliable estimates for bands of taxable income above £100,000.

Taxable income range1 Number of taxpayers (thousands) Proportion of taxpayers
£ per year
25,500–30,000 680 0.026
30,000–40,000 750 0.029
40,000–50,000 300 0.012
50,000–60,000 150 0.006
60,000–70,000 80 0.003
70,000–80,000 50 0.002
80,000–90,000 30 0.001
90,000–100,000 20 0.001
Over 100,000 110 0.004
Total 2,200 0.085
1 Taxable income is defined as gross income for income tax purposes less those allowances and reliefs which are available at the taxpayer's marginal rate.

Mr. Field

To ask the Chancellor of the Exchequer what estimate he has made of the cost of raising the starting point for higher rate tax by an additional(a) £5,000 and (b) £10,000; and how many and what proportion of taxpayers will be affected. [34569]

Mr. Jack

[holding answer 26 June 1996]: The full year cost of increasing the basic rate limit and the number and proportion of people affected at 1996–97 income levels are given in the table.

Increase in basic limit (£) Cost in full year(£ billion) Number of taxpayers affected(million) Proportion of taxpayers affected
5,000 1.5 2.2 0.085
10,000 2.5 2.2 0.085

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