HC Deb 08 April 1971 vol 815 cc288-9W
Mr. Arthur Lewis

asked the Chancellor of the Exchequer whether he will publish in HANSARD a table of figures giving the present deductions for income tax and surtax of a husband and wife, husband, wife and one child, and husband, wife and two children, where normal tax allowances are claimed, for the year ending 1971 on incomes of £1,000 per annum, £1,500 per annum, £2,000 per annum, £3,000 per annum, £10,000 per annum, £15,000 per annum, and £50,000 per annum; and how, taking account of increased allowances and contributions for National Insurance contributions and the reduction in taxes, these net incomes will be affected as a result of his Budget proposals.

Mr. Higgins

The information is as follows:

(A) INCOME TAX AND SURTAX PAYABLE, 1970–71
£ per annum
Earned Income* Married: No children Married: 1 child Married: 2 children
1,000 … 129.02 81.58 51.47
1,500 … 289.43 242.00 211.88
2,000 … 449.85 402.41 372.30
3,000 … 770.68 723.25 693.13
10,000 … 4,182.06 4,097.25 4,029.76
15,000 … 8,100.56 8,004.25 7,925.26
50,000 … 39,911.31 39,806.37 39,718.76
* "Earned income" includes family allowances where appropriate. It is assumed that none of it is earned by the wife.

(B) Effect of Budget* changes and increased National Insurance contributions
£ per annum
Married: No children
Earned income† Tax reduction National Insurance increase Net increase in income
1,000 … 7.82 0.52 7.30
1,500 … 17.54 5.72 11.82
2,000 … 27.26 26.00 1.26
3,000 … 46.71 33.80 12.91
10,000 … 370.09 33.80 336.29
15,000 … 1,128.39 33.80 1,094.59
50,000 … 6,736.96 33.80 6,703.16

Married: 1 child
Earned income† Tax reduction National Insurance increase Net increase in income
1,000 … 20.45 0.52 19.93
1,500 … 30.17 5.72 24.45
2,000 … 39.89 26.00 13.89
3,000 … 59.34 33.80 25.54
10,000 … 391.51 33.80 357.71
15,000 … 1,158.02 33.80 1,124.22
50,000 … 6,769.58 33.80 6,735.78

Married: 2 children
Earned income† Tax reduction National Insurance increase Net increase in income
1,000 … 34.12 0.52 33.60
1,500 … 43.84 5.20 38.64
2,000 … 53.56 23.92 29.64
3,000 … 73.01 33.80 39.21
10,000 … 410.43 33.80 376.63
15,000 … 1,188.69 33.80 1,154.89
50,000 … 6,803.26 33.80 6,769.46
* Reduced standard rate of income tax; increased earned income relief; increased child allowances.
† "Earned income" includes family allowances where appropriate. It is assumed that none of it is earned by the wife.

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