HC Deb 01 July 1997 vol 297 c122W
Mr. Baker

To ask the Chancellor of the Exchequer what estimate he has made of the impact on the tax yield of increasing the top rate of tax to 50p in the pound; and if he will make a statement. [6254]

Dawn Primarolo

The estimated full year yield at 1997–98 income levels of increasing the top rate of income tax from 40 per cent. to 50 per cent is £5.3 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.

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