§ Mr. Meacherasked the Chancellor of the Exchequer what was the gain received by those with incomes, respectively, below £5,000, £5,000 to £10,000, £10,000 to £15,000, £15,000 to £20,000, £20,000 to £30,000, and over £30,000 as a result of each Budget since May 1979, both as aggregate totals for those in each category and as
Changes in income tax yields* Overall† Due to real changes in allowances etc‡ Due to indexation|| Range of total income in 1982–83¶ No. of units paying tax in 1982–83 Amount Average per tax unit Amount Average per tax unit Amount Average per tax unit £ (million) £ million £ £ million £ £ million £ Under 5,000• 7–4 1,920 210 -340 -45 2,260 245 5,000–10,000 9.2 3,590 390 30 5 3,560 385 10,000–15,000 3.1 2,130 695 240 80 1,890 615 15,000–20,000 0.8 1,190 1,460 170 205 1,020 1,255 20,000–30,000 0.4 1,100 2,865 170 445 930 2,420 Over 30,000 0.1 1,230 8,435 530 3,650 700 4,785 21.0 11,160 800 10,360 * Figures are calculated on the income tax base for 1982–83 and do not include the effect of any changes in the definition of income included in the tax base between 1978–79 and 1982–83. † These columns show the increase in yield of income tax for 1982–83, if 1978–79 allowances (apart from child tax allowances), thresholds and rates were substituted without indexation for those currently in force. As child tax allowances were being phased out in 1978–79, and have now been completely replaced by child benefit, they have been left out of account in comparing tax yields for 1982–83. ‡ These columns show the increase in yield of income tax for 1982–83, if 1978–79 rates for tax and 1978–79 allowances and thresholds (after indexation to 1982–83 levels in line with the increase in the RPI between December 1977 and December 1981) were substituted for those currently in force. ║ Difference between (2) and (3). ¶ All information is in terms of tax units—that is, married couples are counted as one and their incomes combined. • The amounts for this income range in the first pair of columns exclude the yield from those who are not on Revenue records and who would be brought into tax if the 1978–79 allowances are in force for 1982–83. The averages are calculated as follows: Columns for overall change and change due to indexation: by reference to all those on record who would be paying tax under the 1978–79 regime; this number is some 1.8 million greater than the actual numbers paying tax in 1982–83; increasing the number in the income range below £5,000 per year from 7.4 million to 9.2 million.
Column for real changes in allowances etc: by reference to the numbers who would have been paying tax under the indexed 1978–79 regime.