§ Mr. MacGregorasked the Chancellor of the Exchequer how many (a) tax units and (b) taxpayers have been liable to tax during the financial years 1973–74 onwards; and what is his estimate for 1978–79, indicating the point of time taken in the financial year, or other basis of computation in use.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 27th April 1978; Vol. 948, c. 675], gave the following information:
The numbers liable to tax are as follows: '000s Tax units Taxpayers 1973–74 19,810 23,300 1974–75 20,530 24,500 1975–76 20,920 25,400 1976–77* 21,170 25,900 1977–78* 20,410 24,700 1978–79† 21,040 25,600 * Provisional. † Estimated. The figures for 1978–79, consistently with figures for earlier years, is an estimate of the number of persons liable to tax on their estimated income over the fiscal year as a whole.
The increases in general allowances announced in October 1977 which anticipated the indexation requirement for 1978–79 of last year's Finance Act are reflected in the fall in numbers of taxpayers in 1977–78. The Budget proposal for a lower rate band, though benefiting large numbers of the lower paid, does not itself alter the number of taxpayers.