HC Deb 21 April 1980 vol 983 cc19-20W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer, further to his reply dated 11 March concerning tax on privately-owned housing, whether he will publish in the Official Report a table showing for each income tax band (a) the average gain in post-tax income from raising the threshold by £250 and reducing the standard rate by 3.75p, respectively, (b) the implied rental value of the house in each case and (c) the implied capital value.

Mr. Peter Rees

The figures which follow are given at 1979–80 income levels and tax rates so as to be consistent with the earlier reply—[Vol. 980, c.539–40]. Assuming that the taxpayer was not within the first £250 of each income tax band, the gain in post-tax income if the tax threshold were raised by £250 would be as follows:

1979–80 income tax bands Gain
£
Lower rate 62.50
Basic rate 75.00
40% 100.00
45% 112.50
50% 125.00
55% 137.50
60% 150.00

A reduction in the basic rate of tax by 3.75p would not benefit those paying tax at the lower rate. Basic rate taxpayers would gain varying amounts up to a maximum of £346 at the upper limit of the basic rate band and those on the higher rates would also benefit by up to that amount—depending on whether a married couple benefited from one or two lower rate bands. The average of these varying amounts for all tax units—including both husbands and wives—is a gain of £96 per tax unit liable at the basic rate only and of £334 per tax unit liable at the higher rates.

I regret that the further information requested is not available, although some general information about expenditure on housing by income level may be found in table 6 of the report on the 1978 family expenditure survey published by HMSO.

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