HC Deb 18 March 1941 vol 370 cc42-4W
Sir G. Jones

asked the Chancellor of the Exchequer whether he will state his estimate of the amount payable by persons with annual incomes of £5,000, £10,000, £20,000 and £50,000, respectively, in Income Tax, Surtax and insurance to cover Estate Duty, based on the calculation made by the Colwyn Committee on National Debt and Taxation, if the taxpayer derives all his income from investments and if the taxpayer derives half his income from investments and half from earnings, respectively, in the years 1913, 1923 and 1941?

Sir K. Wood

The following table shows, for the years 1913–14, 1923–24, and 1940–41, the Income Tax and Surtax (or Super Tax) payable on certain annual incomes, together with the net annual payment required to meet the Estate Duty on death. The figures are computed on the basis adopted in the Report of the Colwyn Committee on National Debt and Taxation, 1927, investment income being capitalised on a 5 per cent. basis and the taxpayer being assumed to be a married man, aged 45, with three children.

Year. Total Income. All Investment Income. Half-Earned Income and Half Investment Income
Equivalent Capital. Income Tax. Surtax (or Super Tax). Net Insurance payment to provide for Estate Duty. Total. Equivalent Capital. Income Tax. Surtax (or Super Tax). Net Insurance payment to provide for Estate Duty. Total.
£ £ £ £ £ £ £ £ £ £ £
1913–14 5,000 100,000 292 — 298 590 50,000 292 — 113 405
10,000 200,000 583 175 725 1,483 100,000 583 175 290 1,048
20,000 400,000 1,167 425 1,600 3,192 200,000 1,167 425 725 2,317
50,000 1,000,000 2,917 1,175 5,176 9,268 500,000 2,917 1,175 2,000 6,092
1923–24 5,000 100,000 1,029 362 501 1,892 50,000 984 362 176 1,522
10,000 200,000 2,154 1,462 1,420 5,036 100,000 2,109 1,462 501 4,072
20,000 400,000 4.404 3,962 4,122 12,488 200,000 4,359 3,962 1,420 9,741
50,000 1,000,000 11,154 12,712 14,121 37,987 500,000 11,109 12,712 5,252 29,073
1940–41 5,000 100,000 1,960 481 1,197 3,638 50,000 1,854 481 406 2,741
10,000 200,000 4,085 2,006 3,865 9,956 100,000 3,979 2,006 1,108 7,093
20,000 400,000 8,335 6,319 10,689 25,343 200,000 8,229 6,319 3.574 18,122
50,000 1,000,000 21,085 20,569 56,802 98,456 500,000 20,979 20,569 1.5,765 57,313