HC Deb 30 September 1942 vol 383 cc779-82W
Mr. Purbrick

asked. the Chancellor of the Exchequer the number of individuals whose net income after deduction of Income Tax and Surtax for 1941–42 exceeded £1,000, classified in the following ranges of net income, namely, £1,000 to £2,000, £2,000 to £4,000, £4,000 to £6,000, and over £6,000, together with the corresponding numbers of taxpayers

Range of Net Income (i.e. Total Gross Income as assessed to tax, less the Income Tax and Surtax payable thereon). Individuals with net incomes exceeding £1,000:
Year 1938–39 Nos. Year 1941–42 Nos.
Exceeding Not exceeding
£ £
1,000 2,000 155,000 105,000
2,000 4,000 56,000 30,750
4,000 6,000 12,000 1,170
6,000 7,000 80
Total 230,000 137,000

With regard to the last part of the Question the amount of tax payable on the incomes mentioned and the net income remaining in each case are as follow:

Gross Income. Year 1938–39. Year 1941–42.
I.T. and S.T. payable.* Net Income. I.T. and S.T. payable.* Net Income.
£
2,000 … … … 359 1,641 776 1,224
5,000 … … … 1,536 3,464 2,757 2,243
I0,000 … … … 4,173 5,827 6,782 3,218
25,000 … … … 13,698 11,302 20,970 4,030
50,000 … … … 30,923 19,077 45,345 4,655
100,000 … … … 67,173 32,827 94,095 5,905
*The taxpayer is assumed to be a married man with 2 children, and his income wholly earned. The figures would differ slightly for other classes of taxpayers, or if the income included investment income.

Sir F. Sanderson

asked the Chancellor of the Exchequer whether he will give an estimate of the amount payable by persons with annual incomes of £2,000, £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 tax-, payer derives half his income from investments and half from earnings, respectively, in the years 1913, 1923, 1933, 1940 and 1942? in each range for 1938–39, also the amount of tax payable on gross incomes of £2,000, £5,000, £10,000, £25,000, £50,000 and £100,000 for 1938–39 and 1941–42 and the net income remaining after deduction of the tax?

Sir K. Wood

The estimated numbers of individuals whose net incomes after deducting the Income Tax and Surtax payable fall into the various ranges of net income over £1,000 are as follow:

Sir K. Wood

The following table shows for the years 1913–14, 923–24, 1933–34, 1940–41 and 1942–43 the Income Tax and Surtax (or Super-tax) payable on the incomes in question, together with the net annual payment required to meet the Estate Duty on death. The table is on the basis adopted in' their Report by the Colwyn Committee on National Debt and Taxation, 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.

All Investment income. Half Earned Income and Half Investment Income.
Year. Total Income. Equivalent Capital. Income Tax. Surtax (or Super-tax). Net Insurance Payment to provide for Estate Duty. Total Income. Equivalent Capital. Income Tax. Surtax (or Super-tax). Net Insurance Payment to Total.
£ £ £ £ £ £ £ £ £ £ £
1913–14 … … 2,000 40,000 117 — 91 208 20,000 96 — 39 135
… … 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 … … 2,000 40,000 354 — 126 480 20,000 331 — 43 374
… … 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
1933–34 … … 2,000 40,000 408 — 169 577 20,000 358 — 52 410
… … 5,000 100,000 1,158 337 732 2,227 50,000 1,083 337 247 1,667
… … 10,000 200,000 2,408 1,519 2,099 6,026 100,000 2,333 1,519 732 4,584
… … 20,000 400,000 4,908 4,682 6,258 15,848 200,000 4,833 4,682 2,019 11,534
… … 50,000 1,000,000 12,408 15,957 23,231 51,596 500,000 12,333 15,957 7,302 35,592
1940–41 … … 2,000 40,000 685 — 197 882 20,000 614 — 59 673
… … 5,000 100,000 1,960 481 1,042 3,483 50,000 1,854 481 321 2,656
… … 10,000 200,000 4,085 2,006 3,501 9,592 100,000 3,979 2,006 979 6,964
… … 20,000 400,000 8,335 6,319 9,856 24,510 200,000 8,229 6,319 3,210 17,758
… … 50,000 1,000,000 21,085 20,569 53,637 95,291 500,000 20,979 20,569 13,024 54,572
1942–43 … … 2,000 40,000 826 — 197 1,023 20,000 776 — 59 835
… … 5,000 100,000 2,326 481 1,042 3,849 50,000 2,251 481 321 3,053
… … 10,000 200,000 4,826 2,006 3,501 10,333 100,000 4,751 2,006 979 7,736
… … 20,000 400,000 9,826 6,319 9,856 26,001 200,000 9,751 6,319 3,210 19,280
… … 50,000 1,000,000 24,826 20,569 53,637 99,032 500,000 24,751 20,569 13,024 58,344