Income Tax (Hansard, 3 July 2003)

§ Mr. McNamara
To ask the Chancellor of the Exchequer what the cost would be to the Exchequer if the 22 per cent. income tax rate bracket was increased to include individuals with yearly incomes of(a) £40,000, (b) £45,000, (c) £50,000, (d) £55,000 and (e) £60,000. [121662]

§ Dawn Primarolo
[holding answer 26 June 2003]: The full year cost or yield of extending the basic rate limits in 2003–04 is given in the following table. 372W

Full year cost of increasing the Basic Rate Limit to include individuals with annual gross income of: £billion

(a) 40,000 2.5

(b) 45,000 4.5

(c) 50,000 6.0

(d) 55,000 7.2

(e) 60,000 8.3

These estimates are based upon the 2000–01 Survey of Personal Incomes and are consistent with Budget 2003. They exclude any behavioural response to the tax change.

§ Mr. McNamara
To ask the Chancellor of the Exchequer what the revenue impact would be of increasing the higher income tax rate to 50 per cent. and extending the 22 per cent. income rate bracket to include yearly earnings of up to(a) £40,000, (b) £45,000 and (c) £50,000. [121664]

§ Dawn Primarolo
[holding answer 26 June 2003]: The full year yield of extending the basic rate limits and increasing the higher income tax rate to 50 per cent. in 2003–04 is given in the following table.

Increasing the higher income tax rate to 50 per cent. and Basic Rate Limit to include individuals with annual gross income of: Full year yield (£ billion)

(a) 40,000 8.2

(b) 45,000 5.2

(c) 50,000 2.8

The estimates are based upon the 2000–01 Survey of Personal Incomes and are consistent with Budget 2003.
They exclude any behavioural response to the tax change.

§ Mr. Kidney
To ask the Chancellor of the Exchequer what estimate he has made of the number of tax payers who would be required to pay a top rate of income tax set for this financial year at(a) £100,000 and above and (b) £150,000 and above of taxable income. [122362]

§ Dawn Primarolo
The information is given in the table.

Number of higher rate taxpayers in 2003–04 with taxable incomes of Numbers in thousands

(a) £1,00,000 and above 327

(b)£1,50,000 and above 158

These estimates are based upon the 2000–01 Survey of Personal Incomes and are consistent with the Budget 2003.

§ Sue Doughty
To ask the Chancellor of the Exchequer what estimate he has made of the revenue that would be raised from income tax rates of(a) 1 per cent., (b) 5 per cent., (c) 9 per cent. and (d) 10 per cent. on gross incomes in excess of £1,000,000 a year. [122624]

§ Dawn Primarolo
[holding answer 30 June 2003]: The full year revenue yield from making these changes in 2003–04 is set out in the table. 373W

Full year yield of raising the higher rate of income tax in 2003–04 on gross incomes in excess of £1,000,000 £billion

(a) by 1 per cent. 0.1

(b) by 5 per cent. 0.3

(c) by 9 per cent. 0.6

(d) by 10 per cent. 0.7

These estimates are based upon the 2000–01 Survey of Personal Incomes and are consistent with Budget 2003. They exclude any behavioural response to the tax change.

Full year cost of increasing the Basic Rate Limit to include individuals with annual gross income of:	£billion
(a) 40,000	2.5
(b) 45,000	4.5
(c) 50,000	6.0
(d) 55,000	7.2
(e) 60,000	8.3

Increasing the higher income tax rate to 50 per cent. and Basic Rate Limit to include individuals with annual gross income of:	Full year yield (£ billion)
(a) 40,000	8.2
(b) 45,000	5.2
(c) 50,000	2.8

Number of higher rate taxpayers in 2003–04 with taxable incomes of	Numbers in thousands
(a) £1,00,000 and above	327
(b)£1,50,000 and above	158

Full year yield of raising the higher rate of income tax in 2003–04 on gross incomes in excess of £1,000,000	£billion
(a) by 1 per cent.	0.1
(b) by 5 per cent.	0.3
(c) by 9 per cent.	0.6
(d) by 10 per cent.	0.7