§ Baroness Greengross
asked Her Majesty's Government:
What number and percentage of people aged over state pension age pay (a) no tax; (b) tax at the lower rate; (c) tax at the basic rate; and (d) tax at the higher rate; and whether they can provide similar figures for 2001–2,1997–8 and 1993–4. [HL6160]46WA
§ Lord McIntosh of Haringey
The number and percentage of people aged over state pension age by tax bracket is given in the table.
(Numbers. Thousands) 1993–94 1997–98 2001–02 Number of Pensioners(2) 10,600 10,700 10,800 Number of pensioners not paying tax (3) 7,030 6,700 6,310 Percentage of all pensioners 66% 63% 58% Number of pensioners paying tax (3) at lower (4) rate 1,520 1.840 — Percentage of all pensioners 14% 17% — Number of pensioners paying tax (3) at starting (5) rate — — 920 Percentage of all pensioners — — 9% Number of pensioners paying tax (3) at 'savers' rate (6) — — 580 Percentage of all pensioners — — 5% Number of pensioners paying tax (3) at basic rate (7) 1,920 1,980 2,750 Percentage of all pensioners 18% 19% 25% Number of pensioners paying tax (3) at higher rate (8) 130 180 230 Percentage of all pensioners 1% 2% 2% (1) Estimates are projected in line with the April 2002 Budget. (2) Pensioners are defined as women aged 60 and over and men aged 65 and over.
Source: Government Actuary's Department.
(3)Taxpayer estimates are based on the Survey of Personal Incomes
(4)From 1993–94 until 1998–99 a number of taxpayers with taxable income in excess of the lower rate limit only paid tax at the lower rate. This was because it was only their dividend income and (from 1996–97) their savings income which took their taxable income above the lower rate limit, and such income was chargeable to tax at the lower rate and not the basic rate.
(5)In 1999–2000 the starting rate replaced the lower rate. Taxpayers with a marginal rate at the 10 per cent starting rate from an extra £1 of earnings.
(6)Taxpayers with a marginal rate at the 20 per cent lower rate for savings income or the 10 per cent ordinary dividend rate from an extra £1 of earnings. Before 1999–2000 these people would have been classified as lower rate taxpayers.
(7)Taxpayers with a marginal rate at the basic rate from an extra £1 of earnings.
(8)Taxpayers with taxable income above the higher rate threshold.