§ Mr. Maurice Macmillanasked the Chancellor of the Exchequer what is the estimated loss of revenue from the abolition of the 40 per cent. income tax band in the fiscal years 1975–76, 1976–77 and 1977–78.
§ Mr. Robert Sheldon:For 1975–76 the estimated full-year cost of abolishing the 40 per cent. income tax band and extending the basic rate band to £5,000 is about £25 million. Costs in future years will depend on the growth of income and ally changes in the tax system.
§ Mr. Maurice Macmillanasked the Chancellor of the Exchequer what is the estimated yield of a 1 per cent. increase in the 35 per cent. income tax rate in the fiscal years 1975–76, 1976–77 and 1977–78.
§ Mr. Robert Sheldon:For 1975–76 the estimated full-year yield from an increase of 1p in the basic rate of income tax would be about £360 million. Yields in future years would depend on the growth of income and changes ill the tax system.