HC Deb 18 July 1977 vol 935 cc393-4W
Mr. MacGregor

asked the Chancellor of the Exchequer if he will list the gross and net yields of the following forms of saving for savers with marginal tax rates of 35 per cent., 40 per cent., 50 per cent., 60 per cent., 70 per cent. and 83 per cent., respectively, defining the gross yield in the cases where the form of saving is tax exempt as that which would be necessary if tax had been applied in the normal way, namely, building society deposits, building society four-year term shares, average yield ofFinancial Times30 share index, 15th and 16th issues of National Savings Certificates, Retirement Issue of National Savings Certificate and tax-free portion of interest on National Savings Bank deposits.

Mr. Denzil Davies

Following is the information:

Form of Saving and Income Tax rate Gross Yield per cent Net yield Per cent
15th (Retirement) Issue of National Savings Certificates:
Tax at 35 per cent. … 26.26 17.07
Tax at 40 per cent … 28.45 17.07
Tax at 50 per cent … 34.14 17.07
Tax at 60 per cent … 42.68 17.07
Tax at 70 per cent … 56.90 17.07
Tax at 83 per cent … 100.41 17.07
16th Issue National Savings Certificates:
Tax at 35 per cent. … 13.50 8.78
Tax at 40 per cent. … 14.63 8.78
Tax at 50 per cent … 17.55 8.78
Tax at 60 per cent. … 21.94 8.78
Tax at 70 per cent. … 29.25 8.78
Tax at 83 per cent. … 51.62 8.78
National Savings Bank Ordinary Account:
Tax at 35 per cent. … 7.69 5.00
Tax at 40 per cent. … 8.33 5.00
Tax at 50 per cent. … 10.00 5.00
Tax at 60 per cent. … 12.50 5.00
Tax at 70 per cent. … 16.67 5.00
Tax at 83 per cent. … 29.41 5.00
Building Society Share Accounts:
Tax al 35 per cent. … 10.31 6.70
Tax at 40 per cent … 10.31 6.18
Tax at 50 per cent … 10.31 5.15
Tax at 60 per cent … 10.31 4.12
Tax at 70 per cent … 10.31 3.09
Tax at 83 per cent … 10.31 1.75
Building Society 4-year term shares:
Tax at 35 per cent … 11.85 7.70
Tax at 40 per cent … 11.85 7.11
Tax at 50 per cent … 11.85 5.92
Tax at 60 per cent … 11.85 4.74
Tax at 70 per cent … 11.85 3.55
Tax at 83 per cent … 11.85 2.01
Financial Times 30 Share Index:
Tax at 35 per cent … 5.16 3.35
Tax at 40 per cent … 5.16 3.10
Tax at 50 per cent … 5.16 2.58
Tax at 60 per cent … 5.16 2.06
Tax at 70 per cent … 5.16 1.55
Tax at 83 per cent … 5.16 0.88