§ David WinnickTo ask the Chancellor of the Exchequer what steps have been taken to ensure that high income earners pay the 40 per cent. income tax rate and not the standard one on the basis that a company is being run by them; and if he will make a statement. [144649]
§ Dawn PrimaroloI refer my hon. Friend to the statement made in this House on 10 December 2003 by the Chancellor of the Exchequer and to paragraph 5.91 of the Pre-Budget Report published the same day.
§ David WinnickTo ask the Chancellor of the Exchequer how many individuals in the last three tax years were informed by the Inland Revenue that, though claiming to be eligible to pay the standard income tax rate because of running a company, the amount they would have to pay was 40 per cent.; and if he will make a statement. [144651]
§ Dawn PrimaroloNone. There is no direct correlation between the amount of income tax an individual would pay on profits if self employed and the amount of income tax payable on salary and dividends received from a limited company.