§ Mr. Craigenasked the Chancellor of the Exchequer if he will publish a table showing the yield from each income tax band from 1945 to the latest available year, showing also the percentage of the total annual revenue from income tax which each figure represents.
§ Mr. Peter ReesUntil the unification of income tax in 1973–74, higher incomes were chargeable to surtax. The yields of surtax at the various rates are not available for the years 1945–46 to 1961–62 inclusive, but for the years 1962–63 to 1972–73 they have been published by the Board of Inland Revenue in its annual reports—to 1965–66—or in Inland Revenue statistics—IRS—(from 1966–67). References are attached:
Year Sources 1962–63 108th report, table 76 1963–64 109th report, table 62 1964–65 110th report, table 64 1965–66 111th report, table 57 1966–67 IRS, 1970 table 37A 1967–68 IRS 1971, table 42C 1968–69 IRS 1972, table 42C 1969–70 IRS 1973, table 44C 1970–71 IRS 1974, table 22C 1971–72 IRS 1975, table 18C 1972–73 IRS, 1975, table 18C No estimates for the tax yields from the various reduced rates in force from 1945–46 to 1969–70 are available, but estimates of total income tax yields have been published regularly in the reports referred to above. Up to 1965 income tax was payable on the profits of companies as well as on the incomes of individuals.
Estimates of income tax paid by individuals at each rate for the years 1973–74 onwards are shown in the following table.
The figures for 1973–74 to 1976–77 inclusive are estimated from the Inland Revenue's annual survey of personal incomes.
The figures for 1977–78 and 1978–79 are based on projections and are provisional. They are not entirely consistent with the figures for 1973–74 to 1976–77 since no account is taken of elections by married couples to have wives' earnings taxed separately. Such elections tend to reduce the tax payable at the higher rates and increase that at the basic rate.
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1973–74 1974–75 1975–76 Rate Yield of tax Percentage of total Rate Yield of tax Percentage of total Rate Yield of tax Percentage of total per cent. £m. per cent. £m. per cent. £m. Basic rate … … … … … 30 6,930 86.6 33 10,000 85.4 35 13,700 86.3 Higher rates … … … … … 40 135 1.7 38 130 1.1 40 205 1.3 45 105 1.3 43 200 1.7 45 305 1.9 50 90 1.1 48 160 1.4 50 220 1.4 55 140 1.8 53 130 1.1 55 175 1.1 60 100 1.2 58 195 1.7 60 250 1.6 65 100 1.2 63 135 1.2 65 170 1.1 70 90 1.1 68 140 1.2 70 165 1.0 75 175 2.2 73 135 1.2 75 155 1.0 — — — 83 285 2.4 83 295 1.9 Additional rates on investment income … — — — 10 35 0.3 10 40 0.3 15 135 1.7 15 165 1.4 15 190 1.2 776W777W
1976–77 1977–78 1978–79 Rate Yield of tax Percentage of total Rate Yield of tax Percentage of total Rate Yield of tax Percentage of total per cent. £m. per cent. £m. per cent. £m. Low rate … … … … … — — — — — — 25 4,400 21.4 Basic rate … … … … … 35 15,600 86.2 34 15,800 85.5 33 13,700 66.7 Higher rate … … … … … 40 240 1.3 40 355 1.9 40 250 1.2 45 355 2.0 45 280 1.5 45 205 1.0 50 245 1.4 50 230 1.2 50 170 0.8 55 200 1.1 55 190 1.0 55 215 1.0 60 225 1.2 60 290 1.6 60 175 0.9 65 215 1.2 65 200 1.1 65 185 0.9 70 205 1.1 70 155 0.8 70 180 0.9 75 195 1.1 75 250 1.4 75 250 1.2 83 345 1.9 83 465 2.5 83 505 2.5 Additional rates on investment income … 10 50 0.3 10 25 0.1 10 30 0.1 15 215 1.2 15 230 1.2 15 265 1.3
§ Mr. Gwilym Robertsasked the Chancellor of the Exchequer if he will publish in the Official Report the numbers involved and the proportions paying income tax at various levels.
§ Mr. Peter ReesI shall let the hon. Member have a reply as soon as possible.