§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer if he will estimate the reduction in tax paid per year in cash terms, and as a percentage of total gross annual income, for each income decile group, resulting from increasing the lop tax band on earnings by £100; and if he will make a statement. [120800]
§ Dawn Primarolo[holding answer 9 May 2000]For taxpayers in 2000–01, the estimates for an increase in the starting rate limit are given in the table.
Income tax of extending the starting rate limit to £1,620 in 2000–011,2 Decile2 Total reduction in income tax (£ million) Reduction in tax as a percentage of total gross annual income Lowest 5 0.04 2nd 27 0.13 3rd 32 0.12 4th 33 0.10 5th 33 0.09 6th 33 0.07 7th 33 0.06 8th 33 0.05 9th 33 0.04 Highest 33 0.02 1 Based on the survey of personal incomes and consistent with the March 2000 Budget. 2 The estimates exclude an offsetting effect from the Working Families Tax Credit because this is allowed at family level and not at individual level.