§ Mr. Fieldasked the Chancellor of the Exchequer how much of the total revenue lost as a result of the cuts in direct taxation announced in the Budget excluding the revenue that would have been lost through the increase in personal allowances announced in the caretaker Budget, has benefited (a) taxpayers who were paying above the standard rate of tax before the Budget, (b) taxpayers who were paying the standard rate before the Budget and (c) taxpayers who were paying at the 25 per cent. rate before the Budget; and how many taxpayers were in each of these categories before the Budget.
§ Mr. Peter ReesThe full-year benefit to individuals of the main income tax changes in the Budget, excluding the changes enacted in the Finance Act 1979, is estimated at £3,570 million.
473WOf this about £1,350 million benefits those who would have been liable at higher rates without the Budget changes, £2,100 million of those liable at the basic rate and about £100 million those liable at the lower rate. Earning wives are included separately where they are liable at the lower rate, but with their husbands in the other calculations.
Of the estimated 21,600,000 tax units—counting married couples as one—liable to tax in 1979–80 on the caretaker Finance Act allowances, approximately 1,200,000 would have a marginal tax rate at one of the higher rates, 17,800,000 at the basic rate and 2,600,000 at the lower rate. In addition, there are 1,400,000 earnings wives whose marginal rate would have been the lower rate, out of 4,900,000 taxpaying earning wives.