Income Tax (Hansard, 19 May 1978)

§ Mr. Sproat
asked the Chancellor of the Exchequer what latest estimate he has made of the single rate of income tax which would bring in to the Treasury the same income as the present rates of income tax if all persons in regular employment were to pay one rate of income tax on all wages, with no allowance whatsoever.

§ Mr. Robert Sheldon
I regret that information on which to give an estimate relating to employment income is not available. However, assuming that the uniform rate was applied to the total income of persons within the purview of the Inland Revenue, as defined on page 41 of Inland Revenue Statistics 1977, the rate required to give approximately the same yield of tax at 1978–79 income levels would be about 20¼ per cent.

§ Mr. Roderick
asked the Chancellor of the Exchequer what estimate he has of the number of people (a) in Brecon and Radnor, (b) in Wales and (c) in the United Kingdom, who will benefit from the increase in the level at which the higher rate of income tax is paid as proposed in the amendment to the Finance Bill.

§ Mr. Robert Sheldon
If the amendments passed in Committee on 10th May were enacted so that all higher rate thresholds were increased by £1,000, 940,000 taxpayers would benefit, counting married couples as one, in the United Kingdom. The most recent date for which information is available on higher rate taxpayers resident in Wales in 1975–76, when they were about 3 per cent. of all higher rate 325W taxpayers. I regret that separate figures for Brecon and Radnor are not available.

§ Mr. Roderick
asked the Chancellor of the Exchequer how much income tax relief was allowed in the Budget to a married couple with two children if their gross income is £2,500, £3,000, £4,000, £5,000, £7,500, £10,000, £20,000 or £50,000, respectively; and what would be

Reduction in tax compared with 1977–78

Annual Earnings (i) under Budget proposals (ii) if in addition to (i) reduction in basic rate to 33% were enacted (iii) if in addition to (i) raising of all higher rate thresholds by £1,000 were enacted

£ £ £ £

2,500 38 39 38

3,000 38 43 38

4,000 38 53 38

5,000 38 63 38

7,500 38 88 38

10,000 148 210 221

20,000 463 525 861

50,000 616 679 1,106

		Reduction in tax compared with 1977–78
Annual Earnings	(i) under Budget proposals	(ii) if in addition to (i) reduction in basic rate to 33% were enacted	(iii) if in addition to (i) raising of all higher rate thresholds by £1,000 were enacted
£	£	£	£
2,500	38	39	38
3,000	38	43	38
4,000	38	53	38
5,000	38	63	38
7,500	38	88	38
10,000	148	210	221
20,000	463	525	861
50,000	616	679	1,106