HC Deb 24 April 1978 vol 948 cc455-8W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table showing for each of a single person, a single-wage married couple, a two-wage married couple, and single-wage married couples with each of one, two, three and four dependent children, including teenage children, the threshold for the first band

Higher tax rate threshold Threshold as percentage of supplementary benefit entitlement level including allowance for rent and rates
£ Per cent.
Single person … … … … … … … 7,985 706
Single-wage married couple … … … … 8,535 533
Two-wage married couple … … … … … 9,520 594
Married couple, 1 child aged 13 … … … … 8,670 425
Married couple, 2 children aged 10 and 13 … … 8,770 379
Married couple, 3 children aged 10, 13 and 15 … … 8,905 330
Married couple, 4 children aged 8, 10, 13 and 15 … 9,005 298
The figures used for supplementary benefits are the current short term scale rates and for rent and rates the average housing costs for a local authority residence.
Child benefit has not been included.

Mr. Rooker

asked the Chancellor of the Exchequer if he will publish in tabular form his estimates of the number of people taken out of income tax by Budget changes in each of the past four years and the total number of people who paid income tax in each of the same years.

Mr. Robert Sheldon

I shall let my hon. Friend have a reply as soon as possible.

circumstances. The following table illustrates four possible situations:

of higher rate tax during the current year, and also the same threshold measured as a percentage of the relevant supplementary benefit entitlement level, including with the latter an allowance for rent and rates.

Mr. Robert Sheldon

On the basis of the Budget proposals the figures are as follows:

Mr. Rooker

asked the Chancellor of the Exchequer if he will publish a breakdown of his Budget estimate of 360,000 taken out of tax as between earning wives and others.

Mr. Robert Sheldon

I shall let my hon. Friend have a reply as soon as possible.

Mr. Rooker

asked the Chancellor of the Exchequer what is his estimate of the break-down of the £2,410 million of income tax reliefs granted in his Budget between the amount that will accrue to taxpayers within incomes of (a) £2,500 or less, (b)£2,500 to £3,500, (c) £3,500 to £4,500 and (d) above £4,500.

Mr. Robert Sheldon

The estimated break-down is as follows:

Income £ Cost £ million
Under 2,500 265
2,500–3,500 375
3,500–4,500 395
Over 4,500 1,375
2,410

Income is before deduction of personal allowances but after deduction of mortgage interest, allowable expenses, etc. It excludes non-taxable social security benefits. Income of a husband and wife is aggregated.

Mr. Rooker

asked the Chancellor of the Exchequer what is his estimate of the number of taxpayers who will pay a marginal tax rate of (a) the new lower rate, (b) standard rate and (c) higher rates for 1978–79.

Mr. Robert Sheldon

Higher rates are charged on a married couple's joint income—unless the wife elects to be assessed separately on her earnings—whilst the lower rates apply separately to both a wife's earnings and her husband's income.

Counting married couples as one, the estimated figures for 1978–79 are:

Single persons and married couples liable at higher rates 900,000
Single persons liable at lower rate only and married couples where husband's income is charged at lower rate only 2,900,000
Other single persons and married couples, liable at the basic rate 17,200,000
Total tax units 21,100,000

The total of 25,600,000 taxpayers includes a further 4,500,000 taxpaying earning wives. Of these, about 1,700,000 have taxable earnings below £750 and therefore have reduced marginal tax rates. In these cases tie wife's marginal tax rate will normally be 25 per cent. but where the couple's joint income is liable at higher rates the marginal tax liability of the couple will exceed 25 per cent.

In total, it is estimated that in 1978–79 about 4,600,000 taxpayers will have a marginal rate of tax affected by the introduction of the lower rate band.

Mr. Rooker

asked the Chancellor of the Exchequer if he will publish figures comparing the new income tax thresholds in the Budget with the family income supplement and supplementary benefit levels including average for rent and rates to be introduced in November for single persons, married couples, and married couples with one, two and three children, taking into account the November rate child benefit.

Mr. Robert Sheldon

I shall let my hon. Friend have a reply as soon as possible.