HC Deb 29 November 1982 vol 33 cc73-4W
Mr. Ralph Howell

asked the Chancellor of the Exchequer what would be the loss in revenue if the tax threshold were raised to (a) £50 a week for a single person and (b) £70 for a married couple; and if he will estimate the loss in revenue if starting from these thresholds the tax rates commenced at 5 per cent. and increased in 5 per cent. stages to a maximum of 60 per cent. with a maximum threshold of £50,000, in a manner similar to that operating in France.

Mr. Ridley

The loss in revenue in a full year at 1982–83 income levels would be £8¼ billion in respect of the increase in tax thresholds and an additional £10½ billion in respect of the rate structure. In estimating these costs, it has been assumed that the age allowances and income limit would be raised in line with the corresponding ordinary allowances; and that the first £50,000 of taxable income would be charged at rates increasing from 5 per cent. to 60 per cent. as shown in the table below. These band widths are proportionate to the (narrower) bands applicable to a single person in France. No other features of the French tax system have been adopted in estimating the above cost.

Rate (per cent) Band of taxable income (£)
5 0–150
10 151–900
15 901–3,750
20 3,751–6,000
25 6,001–8,550
30 8,551–11,200
35 11,201–13,500
40 13,501–25,200
45 25,201–36,150
50 36,151–43,500
55 43,501–50,000
60 Over 50,000

Forward to