Income Tax (Hansard, 21 April 1953)

§ 49. Mr. Swingler
asked the Chancellor of the Exchequer the number of persons with incomes above the Income Tax exemption limit who were not liable to tax at the latest date for which figures are available.

§ Mr. R. A. Butler
The Income Tax exemption limit, as such was deleted from the Income Tax Acts when small income relief was introduced last year. The effective limit is now £155 and the

Income range Number of persons liable to tax^* Average annual reduction per taxpayer† Average reduction as a Proportion of tax at Pre-Budget rates†

Thousands £ s. Per cent.

Under £500 … … … 9,000 2 9 15½

£500–£1,000 … … … 5,295 6 14 11½

£l,000–£2,000 … … … 875 18 10 6½

£2,000–£5,000 … … … 221 54 8 5

£5,000–£10,000 … … … 38 148 12 4

£10,000–£20,000 … … … 9 310 5 3

£20,000 and over … … … 2 852 2 2½

Notes: ^* A married couple are counted as a single unit and the allocation by range of incomeisbased on their joint income.

† The figures include the effect of the increase in the dependent relative and housekeeper allowances and the higher limit for age relief, as well as the reduction in the income tax rates.

§ Mr. Chetwynd
asked the Chancellor of the Exchequer the number of taxpayers in the income groups below £500, £500–£700,£700–£1,000, £l,000–£2,000 and
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number of incomes above that figure in respect of which no tax is payable is estimated at 4¼ million.

§ 50. Mr. Swingler
asked the Chancellor of the Exchequer his estimate of the number of persons with incomes below the Income Tax exemption limit at the latest date for which he can make an estimate.

§ Mr. R. A. Butler
In accordance with my reply to the previous Question, I have taken an assessed income before tax of £155 a year as representing the effective "Income Tax exemption limit." The number of persons with incomes below this limit is believed to be between 5½ and 6 million, although no precise figure can be calculated. In this estimate, incomes of wives are combined with those of their husbands.

§ Mr. Hoy
asked the Chancellor of the Exchequer how many persons there are in each of the following Income Tax groups: £500 or under, £500 to £1,000, £1,000 to £2,000, £2,000 to £5,000, £5,000 to £10,000, £10,000 to £20,000 and over £20,000, respectively; and what will be the average annual reduction paid, respectively, by persons in each of these groups as a result of the Budget.

§ Mr. Boyd-Carpenter
The figures are given in the table below:
£2,000 and over, respectively; and whether he will give the estimated total Income Tax relief given to the taxpayers in each income group.
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Mr. R. A. Batter
The figures are as follow:

Income range Estimated number liable to tax Aggregate reduction in tax in a full year under the Budget proposals^*

Thousands £ million

Under £500 9,000 22.0

£500–£700 3,470 19.0

£700–£1,000 1,825 16.5

£1,000–£2,000 875 16.2

£2,000 and over 270 22.0

^* The figures coyer the reduction in the rates of tax, the increase in the dependant relative and housekeeper allowances and the increase in the limit for age relief.

Income range	Number of persons liable to tax^*	Average annual reduction per taxpayer†	Average reduction as a Proportion of tax at Pre-Budget rates†
				Thousands	£	s.	Per cent.
Under £500	…	…	…	9,000	2	9	15½
£500–£1,000	…	…	…	5,295	6	14	11½
£l,000–£2,000	…	…	…	875	18	10	6½
£2,000–£5,000	…	…	…	221	54	8	5
£5,000–£10,000	…	…	…	38	148	12	4
£10,000–£20,000	…	…	…	9	310	5	3
£20,000 and over	…	…	…	2	852	2	2½
Notes: ^* A married couple are counted as a single unit and the allocation by range of incomeisbased on their joint income.
† The figures include the effect of the increase in the dependent relative and housekeeper allowances and the higher limit for age relief, as well as the reduction in the income tax rates.

Income range	Estimated number liable to tax	Aggregate reduction in tax in a full year under the Budget proposals^*
	Thousands	£ million
Under £500	9,000	22.0
£500–£700	3,470	19.0
£700–£1,000	1,825	16.5
£1,000–£2,000	875	16.2
£2,000 and over	270	22.0
^* The figures coyer the reduction in the rates of tax, the increase in the dependant relative and housekeeper allowances and the increase in the limit for age relief.