HC Deb 02 July 1976 vol 914 cc357-9W
Mr. Wigley

asked the Chancellor of the Exchequer what would be the additional revenue to the Exchequer if all incomes in excess of (a) £5,000 per annum and (b) £10,000 per annum were taxed at 100 per cent.

Mr. Robert Sheldon

It has been assumed that for mixed incomes exceeding the limits specified the rate would be applied first to any investment income and then to earned income that still exceeded the specified limits. Tax on any income remaining after the application of the 100 per cent. rate has then been charged at the rates proposed for 1976–77 after giving the conditional and unconditional allowances in the Budget and any other deductions such as mortgage interest allowable for tax. On this basis the additional yields for 1976–77 would be as follows:

Level of annual pre-tax income above which 100 per cent. tax rate applies: Additional yield (£ million)
£5,000 … … … 5,000
£10,000 … … … 700

These figures are, however, entirely hypothetical, in that they rest on the unrealistic assumption that there would be no change in the distribution of pretax income resulting from the imposition of a 100 per cent. tax over a given level.

Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table comparing the top rate of income tax in Great Britain with the 10 countries throughout the world which have the lowest top rate of income tax, excluding local income tax.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 29th June 1976; Vol. 914, c. 109–10], gave the following information:

I assume that the hon. Member is referring to rates of tax on earned income. The top rate in the United Kingdom is 83 per cent. Up-to-date information is not available about every country in the world. especially Communist countries. Subject to this, I understand that those countries with the lowest top rates of income tax, excluding local income tax, are as follows:

  • Liechtenstein: 8.5 per cent.
  • St. Helenea: 9 per cent.
  • Switzerland: 11.5 per cent.
  • British Virgin Islands: 3 per cent. on income before, plus 12 per cent. on income after personal allowances.
  • Jersey: 20 per cent.
  • Guernsey: 20 per cent.
  • Isle of Man: 21.25 per cent.
  • Falkland Islands: 30 per cent.
  • Hong Kong: 30 per cent.
  • Nieu Islands: 30 per cent.
  • Gilbraltar: 30 per cent.
  • Paraguay: 30 per cent.

Mr. Ralph Howell

asked the Chancellor of the Exchequer if, from international sources available to him, he will publish a table showing the 10 countries throughout the world with the highest top rates of income tax, excluding local income tax.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 29th June 1976; Vol. 914, c. 110–1], gave the following information:

I assume that the hon. Member is referring to rates of tax on earned income. Up-to-date information is not available about every country in the world especially Communist countries. Subject to this I understand that the 10 countries which have the highest top rates of income tax, excluding any local income tax, are as follows:

  • Algeria: 100 per cent.
  • Egypt: 96.6 per cent.
  • Tanzania: 95 (a) per cent.
  • Portugal: 84 per cent.
  • United Kingdom: 83 per cent.
  • Tunisia: 81.6 per cent.
  • Uganda: 77.5 per cent.
  • Ireland: 77 (b) per cent.
  • Gambia: 75 per cent.
  • Zambia: 75 per cent.
  1. (a) I regret that this country was omitted from the list of countries with a top marginal rate higher than 83 per cent. in my Written Answer to the hon. Member on 14th June 1976.—[Vol. 913, c. 24.]
  2. (b) includes 10 per cent. surcharge.

Mr. Ralph Howell

asked the Chancellor of the Exchequer (1) if he will publish a table comparing the starting point for income tax in the United Kingdom with that of each of the 10 countries throughout the world which have the lowest starting points for income tax, exclusive of local taxation;

(2) if, from international sources avail, able to him, he will publish a table showing the 10 countries in the world which have the highest starting point for income tax, excluding local taxation.

Mr. Robert Sheldon,

pursuant to his replies [Official Report, 29th June 1976; Vol. 974, c. 111], gave the following information:

I regret that information in this form is not readily available. To assemble it would require a disproportionate amount of time and resources.