Personal Incomes and Capital

HC Deb 24 October 1978 vol 955 cc874-5W

Mr. Lawson

asked the Chancellor of the Exchequer if he will update his answer to the hon. Member for Blaby, Official Report, 13th March 1978, columns 41–2, on the taxation of personal income and capital, so as to provide a comparable percentage figure for 1977–78 and his best estimate for 1978–79.

Mr. Robert Sheldon

The first column in the table below gives the percentage of central Government tax revenue contributed by taxes on personal incomes and capital and is based on the same definitions used in the earlier answer on 13th March 1978. The other three columns contain percentages calculated on slightly differing definitions—excluding and including national insurance contributions

PERCENTAGE OF CENTRAL GOVERNMENT AND GENERAL GOVERNMENT TOTAL TAX REVENUE* CONTRIBUTED BY TAXES ON PERSONAL INCOMES† AND CAPITAL
	Excluding national insurance etc. contributions	Including national insurance etc. contributions
	Central Government	General Government	Central Government	General Government
Financial year	(1)	(2)	(3)	(4)
1959–60	…	…	36.8	32.4	39.2	35.1
1960–61	…	…	39.5	34.8	41.4	37.1
1961–62	…	…	39.7	35.1	41.7	37.5
1962–63	…	…	41.1	36.0	43.0	38.3
1963–64	…	…	41.9	36.3	43.8	38.8
1964–65	…	…	41.7	36.3	43.5	38.7
1965–66	…	…	45.4	39.5	46.2	41.1
1966–67	…	…	43.5	37.7	44.5	39.5
1967–68	…	…	43.1	37.7	44.1	39.4
1968–69	…	…	43.7	38.6	44.5	40.1
1969–70	…	…	42.6	37.9	43.6	39.4
1970–71	…	…	44.3	39.4	45.0	40.7
1971–72	…	…	46.7	41.0	47.0	42.1
1972–73	…	…	46.4	40.3	46.8	41.6
1973–74	…	…	45.7	39.8	46.0	41.0
1974–75	…	…	50.4	44.3	49.1	44.2
1975–76	…	…	55.3	48.2	52.2	46.7
1976–77	…	…	53.8	47.2	50.8	45.8
1977–78	…	…	47.6	41.6	46.1	41.3
1978–79 (forecast)	…	…	(45.6)	(40.0)	(44.3)	(39.8)
* General Government total tax revenue comprises central Government taxes on income, taxes on expenditure and taxes on capital plus local authority rates. National insurance contributions are excluded from columns (1) and (2). In columns (3) and (4) national insurance contributions paid by employees and self-employed have been included in the numerator and all national insurance contributions in the denominator.
† After deducting tax credits on dividends from April 1973.

The figures for the years after 1972–73 are affected by the introduction of the imputation system of corporation tax in April 1973. Prior to April 1973 tax paid on dividends received by the personal sector was included in personal taxation. From April 1973 the advance corporation tax paid by companies in respect of dividend payments forms part of corporate taxation.