§ Mr. Malcolm Bruce
To ask the Chancellor of the Exchequer what is his estimate of the additional annual full-year revenue which would be raised by the introduction of a 50 per cent. rate of income tax on earnings over £100,000 per annum; how many people would pay additional tax as a consequence; and what is the distribution of those persons by area of residence in the United Kingdom. 
§ Mr. Jack
[holding answer 31 October 1996]: Income tax rates are applied to taxable income—that is the total income for income tax purposes—including earnings—less those allowances and deductions which are allowable at marginal rates. The estimated full year yield at 1996–97 income levels of introducing a new rate of 50 per cent. on taxable incomes above £100,000 is £1.1 billion. The yield includes the consequential effects on the yield of capital gains tax after allowing for likely changes in the volume of disposals. It does not take account of any behavioural effects which might result from the introduction of the new rate of tax. About 120,000 taxpayers would be affected.
It is not possible to provide a reliable breakdown below United Kingdom level for 1996–97. The latest available information is for 1994–95.