HC Deb 14 July 1980 vol 988 cc413-5W
Mr. Allan Roberts

asked the Chancellor of the Exchequer what revenue would be produced by imposing a rate of income tax of 90 per cent. on all income above (a) £10,000, (b) £15,000, (c) £20,000 and (d) £30,000.

Mr. Peter Rees

The estimated yields for a full year at 1980–81 income levels would be of the following order:

Income above Estimated Yield
£ £ million
10,000 2,300
15,000 930
20,000 480
30,000 170

Mr. Allan Roberts

asked the Chancellor of the Exchequer what revenue he estimates would be produced by imposing rates of standard and higher income tax bands at the levels of March 1979 whilst maintaining the various personal, married and age allowances at their present level and increasing the threshold for each band in line with the increase in prices since March 1979; and what he estimates to be the extra weekly income tax payed by each of the following categories of person as a result of this tax increase (a) a single person, (b) a married man and (c) a married man with two children, assuming for each category an annual income of (i) £4,000, (ii) £6,000, (iii) £8,000, (iv) £10,000, (v) £20,000 and (vi) £30,000.

Mr. Peter Rees

The estimated yield in a full year at 1980–81 income levels would be about £3,250 million. In the calculation the tax band widths have been revalued by reference to the statutory revalorisation of the main personal allowances, firstly between 1978–79 and 1979–80 (8.9 per cent.) and then between 1979–80 and 1980–81 (17.8 per cent.). This would represent an increase over the whole period of about 28.3 per cent. No lower rate band has been included nor has any change in the present investment income surcharge been assumed. The extra weekly income tax paid would be as follows:

Extra weekly tax
Annual income Single person Married person (with or without children)
£ £
£4,000 1.51 1.07
£6,000 2.67 2.22
£8,000 3.82 3.38
£10,000 4.98 4.53
£20,000 20.70 18.58
£30,000 55.06 52.84

Mr. Allan Roberts

asked the Chancellor of the Exchequer what revenue he estimates would be produced by an increase of 1 per cent. in the standard rate of income tax.

Mr. Peter Rees

About £775 million in a full year at 1980–81 income levels.

Mr. Allan Roberts

asked the Chancellor of the Exchequer what he estimates to be the extra weekly income tax payed by each of the following categories of persons as a result of an increase of 1 per cent. in the standard rate of income tax (a) a single person, (b) a married man, (c) a married man with two children, for each assuming an annual income of (i) £4,000, (ii) £6,000, (iii) £8,000, (iv) £10,000, (v) £20,000 and (vi) £30,000.

Mr. Peter Rees

The figures are as follows:

Annual gross earnings Single Extra weekly tax paid married man (with or without children)
£ £ £
4,000 0.50 0.36
6,000 0.89 0.74
8,000 1.27 1.13
10,000 1.66 1.51
20,000 2.16 2.16
30,000 2.16 2.16

Mr. Allan Roberts

asked the Chancellor of the Exchequer what were the numbers of people, at the latest date for which figures are available, whose taxable income exceeded (a) £2,000, (b) £4,000, (c) £6,000, (d) £8,000, (e) £10,000, (f) £20,000 and (g) £30,000.

Mr. Peter Rees

At 1980–81 income levels the estimated information, counting earning wives separately from their husbands, is as follows:

Taxable income exceeds Number of taxpayers
£ '000
a. 2,000 16,670
b. 4,000 7,220
c. 6,000 2,810
d. 8,000 1,390
e. 10,000 820
f. 20,000 160
g. 30,000 50

Notes:

1. Taxable income is defined as income from all sources liable to tax less allowable deductions, personal allowances and reliefs.

2. The numbers are given before rounding for convenience, but are not accurate to the detail shown.