HC Deb 20 March 1961 vol 637 cc14-5W
Mr. H. Wilson

asked the Chancellor of the Exchequer if he will publish a table comparable with Table C on page 83 of the Second Report of the Royal Commission on the Taxation of Profits and Income (Cmnd. 9105), with the substitution of 1951 income for pre-war income, 1951–52 tax rates for 1938–39 tax rates, and the latest available dates and years for post-war income and 1953–54 tax rates, respectively.

Sir E. Boyle

The table below shows the change in taxation between 1951–52 and 1960–61 in the case of earned incomes of a married person with two children not over 11. For the purposes of this calculation it has been assumed that retail prices have risen by 26½ per cent. between these two years so that 1951 income of £x has been taken as equivalent to a present day income of £1.265 x. Accordingly 1.265 times the

MARRIED PERSON WITH TWO CHILDREN NOT OVER 11
Income 1951–52 tax rates 1960–61 tax rates Tax liabilities as a percentage of income
1951 Equivalent income 1960 Actual liabilities 1960 equivalent liabilities Actual liabilities Decrease in relation to 1951–52 1951–52 1960–61
£ £ £ s. d. £ s. d. £ s. d. per cent. per cent. per cent.
400 506
425 538 1 10 0 1 18 0 100 0.3
450 569 4 10 0 5 13 11 4 5 96 1.0
478 601 7 10 0 9 9 9 2 8 0 75 1.6 0.4
500 633 13 0 0 16 9 0 4 11 7 72 2.6 0.7
625 791 40 10 0 51 4 11 29 14 8 42 6.5 3.8
750 949 72 0 0 91 2 1 64 13 2 29 9.6 6.8
875 1,107 119 10 0 151 4 2 107 12 9 29 13.7 9.7
1,000 1,265 167 0 0 211 6 3 155 5 1 27 16.7 12.3
1,250 1,582 262 0 0 331 10 5 250 15 11 24 21.0 15.9
1,500 1,898 357 0 0 451 14 8 346 0 8 23 23.8 18.2
1,750 2,214 452 0 0 571 18 9 441 5 6 23 25.8 19.9
2,000 2,531 547 0 0 692 2 11 559 18 4 19 27.4 22.1
2,250 2,847 690 15 0 874 0 10 687 18 7 21 30.7 24.2
2,500 3,163 834 10 0 1,055 18 8 822 13 4 22 33.4 26.0
3,000 3,796 1,134 10 0 1,435 10 0 1,117 7 5 22 37.8 29.4
4,000 5,061 1,784 10 0 2,258 0 4 1,803 10 5 20 44.6 35.6
5,000 6,327 2,484 10 0 3,143 15 3 2,577 2 9 18 49.7 40.7
10,000 12,654 6,534 10 0 8,268 8 8 7,282 9 0 12 65.3 57.6