§ Sir George Youngasked the Chancellor of the Exchequer what percentage of 93W average manual earnings in October 1975 was represented by the income tax threshold for 1975–76 for a married man with two children not over 11 years of age; and what would be the estimated comparable figure in 1976–77 assuming earnings rise at an annual rate of 5 per cent.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 21st May 1976; Vol. 911, c. 738], gave the following information:
The figures are 43 per cent. and a little over 48 per cent. respectively. The calculations are based on average earnings of male manual workers at April 1975 updated to October 1975 by reference to the Department of Employment monthly index of average earnings; for October 1976, the October 1975 figure has been increased by 5 per cent. The tax thres-
August 1971 April 1972 April 1973 October 1973 July 1974 July 1975 One-child family Tax threshold £ per week … … 15.33 18.67 18.75 18.75 21.25 22.98 FIS level £ per week … … 18.00 20.00 21.00 21.50 25.00 31.50 Threshold as percentage of FIS … … 85.2 93.3 89.3 87.2 85.0 73.0 Two-child family Tax threshold £ per week … … 18.12 21.46 21.44 21.44 24.87 26.60 FIS level £ per week … … 20.00 22.00 23.50 24.00 28.00 35.00 Threshold as percentage of FIS … … 90.6 97.5 91.2 89.3 88.8 76.0 Three-child family Tax threshold £ per week … … 21.54 24.87 24.81 24.81 29.15 30.88 FIS level £ per week … … 22.00 24.00 26.00 26.50 31.00 38.50 Threshold as percentage of FIS … … 97.9 103.6 95.4 93.6 94.0 80.2 Four-child family Tax threshold £ per week … … 24.95 28.29 28.17 28.17 33.44 35.17 FIS level £ per week … … 24.00 26.00 28.50 29.00 34.00 42.00 Threshold as percentage of FIS … … 104.0 108.8 98.8 97.1 98. 83.74 Tax thresholds assume that the families consist of a man, a non-working wife and children aged: under 11 for one-child and two-child families; two under 11 and one aged 11–15 for a three-child family; and two under 11 and two aged 11–15 for a four-child family.
Where appropriate, in arriving at tax thresholds, the tax allowances have been reduced by the family allowance deduction. They have also been adjusted to take account of earned income relief before April 1973.
Tax thresholds are those appropriate to the income tax year converted to a weekly basis.