Income Tax (Hansard, 22 November 1976)

§ Mr. Newton
asked the Chancellor of the Exchequer if he will publish in the Official Report an estimate of the percentage by which the total yield of income tax would rise, if all personal incomes were to rise by 10 per cent. while tax rates and allowances remained unchanged.

§ Mr. Robert Sheldon
I regret that in the time available it has not been possible to provide the information requested. I will write to the hon. Member.

§ Mr. Hatton
asked the Chancellor of the Exchequer if he will publish in the Official Report the amount of income tax per week payable in the current financial year by a married man with two children under 11 years of age and no other allowances whose income from all sources is £30, £40, £50, £60 or £70 per week, respectively.

§ Mr. Robert Sheldon
I regret that in the time available it has not been possible to provide the information requested. I will write to my hon. Friend.

§ Mr. Newton
asked the Chancellor of the Exchequer if he will publish in the Official Report a table showing the level of earned income at which a married man with two children started to pay income tax at (a) the standard rate, (b) the first of the upper rates, and (c) the top rate of 75 per cent. in the years 1973–74 onwards; and if he will show the same figures as adjusted for changes in the purchasing power of money since the first of these years.

§ Mr. Robert Sheldon
I regret that in the time available it has not been possible to provide the information requested. I will write to the hon. Member.

§ Mr. Newton
asked the Chancellor of the Exchequer (1) what is his estimate of the proportion of the increase in the yield of income tax between 1973–74 and 1976–77 that he attributes to higher tax rates, to higher real incomes and to inflation, respectively;
(2) how many taxpayers have been subject to the higher rates of income tax in 889W the years 1973–74 onwards; and how many are expected to be so affected in the current tax year.

§ Mr. Robert Sheldon
I regret that in the time available it has not been possible to provide the information requested. I will write to the hon. Member.

§ Mr. Newton
asked the Chancellor of the Exchequer what percentage of average manual earnings was represented by the income tax threshold for a married man with two children not over 11 years of age at October of each year since 1969–70.

§ Mr. Robert Sheldon
The figures are as follows:

Tax threshold¹ as percentage of average earnings²+FAM³

Year per cent.

1969–70 54.1

1970–71 55.5

1971–72 57.0

1972–73 58.3

1973–74 51.3

1974–75 49.1

1975–76 41.9

1976–77 44.7

Notes

1. The tax threshold takes account where appropriate of the effect of earned income relief and of the family allowance deduction" clawback ".

2. The New Earnings Survey estimates of the average weekly earnings of full-time adult male manual workers at April of each year have been updated by the Monthly Index of Average Earnings to give estimates of average earnings at October of each year, except for 1976–77 where the estimate is for September 1976.

3. Family allowances of £46.08 per annum up to 1974–75 and £78 for 1975–76 and 1976–77.

	Tax threshold¹ as percentage of average earnings²+FAM³
Year	per cent.
1969–70	54.1
1970–71	55.5
1971–72	57.0
1972–73	58.3
1973–74	51.3
1974–75	49.1
1975–76	41.9
1976–77	44.7
Notes
1. The tax threshold takes account where appropriate of the effect of earned income relief and of the family allowance deduction" clawback ".
2. The New Earnings Survey estimates of the average weekly earnings of full-time adult male manual workers at April of each year have been updated by the Monthly Index of Average Earnings to give estimates of average earnings at October of each year, except for 1976–77 where the estimate is for September 1976.
3. Family allowances of £46.08 per annum up to 1974–75 and £78 for 1975–76 and 1976–77.