HC Deb 21 October 1975 vol 898 cc165-7W
Mr. Noble

asked the Chancellor of the Exchequer of those in receipt of investment incomes, how many, at the latest available date for which information is available, received total incomes of less

Range of Total Net Income Numbers of cases with Net Investment Income Percentage of total Net Net Earned Income Income consisting of:—Net Investment Income
£ ('000)
1972
Under 1,000 … 956 80 20
1,000–1,999 … 2,377 89 11
2,000–2,999 … 1,571 92 8
3,000–4,999 … 944 88 12
5,000–7,999 … 246 80 20
8,000–9,999 … 59 77 23
10,000–14,999 … 61 74 26
15,000–19,999 … 16 70 30
20,000–49,999 … 11 62 38
50,000 and over … 1 55 45
1970–71
Under 1,000 … 1,596 79 21
1,000–1,999 … 2,455 88 12
2,000–2,999 … 1,208 90 10
3,000–4,999 … 575 81 19
5,000–7,999 … 192 75 25
8,000–9,999 … 44 71 29
10,000–14,999 … 38 66 34
15,000–19,999 … 10 61 39
20,000–49,999 … 7 53 47
50,000 and over … 1 30 70
1965–66
Under 1,000 … 5,352 91 9
1,000–1,999 … 1,763 90 10
2,000–2,999 … 270 78 22
3,000–4,999 … 153 70 30
5,000–7,999 … 53 60 40
8,000–9,999 … 11 54 46
10,000–14,999 … 11 49 51
15,000–19,999 … 3 44 56
20,000–19,999 … 2 37 63
50,000 and over … — 23 77

NOTES—Net earned income and net investment income together constitute total net income which is defined in Inland Revenue Statistics 1974 at p. 41. Earned income is as defined for income tax purposes, all other income being treated as investment income. The method of allocating deductions between earned and investment income is described at p. 173 of Inland Revenue Statistics 1974. In 1959–60 but not in the than £1,000, £1,000–£2,000, £2,000–£3,000, £3,000–£5,000, £5,000–£7,500, £7,500–£10,000, £10,000–£15,000, £15,000–£20,000, £20,000–£50,000 and above £50,000; in each case, what percentage of these incomes were, respectively, from earned and investment sources; and how these figures compare with 1950, 1960, 1965 and 1970.

Mr. Robert Sheldon

The tables below give the available information for 1972–73, the latest year, and for the tax years 1970–71, 1965–66 and 1959–60. I regret that the information is not available for 1949–50.

later years investment income included the notional rent of owner occupied houses chargeable under Schedule A. In 1959–60 and 1965–66 interest payable by taxpayers was deductible in full. In 1970–71 it was deductible only if the loan related to a transaction involving land or a business. In 1972–73 deduction was also allowed for other interest in excess of £35.

Husband and wife are counted as one.

These estimates do not include incomes below the effective exemption limit for income tax—1959–60, £180; 1965–66, £275; 1970–71, £420; 1972–73, £595.