§ Mr. Kinnockasked the Chancellor of the Exchequer what would be the additional revenue raised by increasing the standard rate of income tax by 2p, 5p, 7p and l0p in the £, respectively.
§ Mr. Robert SheldonFor 1975–76 the full-year tax yield from an increase of 1p in the basic rate of income tax would be about £360 million. Other increases would be approximately proportional to this—that is, increases of 2p and 5p would yield about £760 million and £1,820 million respectively, but increases of more than 5p would raise the basic rate above the present starting point of the higher rates of tax and the yield would depend on any adjustments made to these.
§ Mr. Kinnockasked the Chancellor of the Exchequer what revenue would be raised by imposing 100 per cent. taxation on those with incomes over £10,000.
§ Mr. Robert SheldonAssuming that gross incomes were not reduced in consequence of the change proposed, the584W additional yield for 1975–76 from taking the whole of the income after tax in excess of £10,000 would be about £35 million.