§ Mr. Meacherasked the Chancellor of the Exchequer if he will indicate the gain or loss to those with incomes 543W under £5,000, £5,000 to £10,000, £10,000 to £15,000, £15,000 to £20,000, £20,000 to £30,000, £30,000 to £50,000 and over £50,000 a year in each Budget separately since 1979, including the 1984 Budget, including both aggregate changes for those in each category and the average change per taxpayer in each category and in every case indicating how much is due to indexation and how much is a real gain.
§ Mr. Moore[pursuant to his reply, 20 March 1984, c. 431I assume the hon. Member has in mind those Budget changes concerned with income tax rates and the level of
Range of Total income in 1984–85* Number of units paying tax in 1984–85 Reductions in income tax† Overall‡ due to real changes in allowances etc.║ due to indexation¶ Amount Average per tax unit Amount Average per tax unit Amount Average per tax unit £ (million) £ million £ £ million £ £ million £ Under 5,000● 5.0 2,370 320 120 20 2,250 305 5,000—10,000 8.8 5,130 580 870 100 4,260 480 10,000—15,000 4.2 4,060 970 840 200 3,220 770 15,000—20,000 1.4 2,570 1,835 520 370 2,050 1,465 20,000—30,000 .7 2,480 3,480 550 770 1,930 2,710 30,000—50,000 .21 1,640 7,700 510 2,400 1,130 5,300 over 50,000 .065 1,260 19,400 760 11,700 500 7,700 20.4 19,510 4,170 15,340 * All information is in terms of tax units—that is, married couples are counted as one and their incomes combined. † Figures are calculated on the forecast income tax base for 1984–85 and do not include the effect of any changes in the definition of income included in the tax base between 1978–79 and 1984–85. ‡ These columns show the reductions in income tax for 1984–85, compared with the position if 1978–79 allowances (apart from child tax allowances), thresholds and rates were substituted without indexation for those proposed in the Budget. As child tax allowances were being phased out in 1978–79, they have been left out of account in comparing tax yields for 1984–85. ║ These columns show the reductions in income tax for 1984–85, compared with the position if 1978–79 rates of tax and 1978–79 allowances and thresholds (after indexation to 1984–85 levels in line with the increase in the RPI between December 1977 and December 1983) were substituted for those proposed in the Budget. ¶ Difference between overall reductions and those due to real change in allowances. ●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 were in force for 1984–85. The averages per tax unit 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 2.4 million greater than the estimated numbers liable to pay tax in 1984–85 under the Budget proposals, increasing the number in the income range below £5,000 per year from 5.0 million to 7.4 million. Column for real changes in allowances etc: by reference to the estimated numbers who would be liable to pay tax under the indexed 1978–79 regime; this number is some 0.5 million greater than the numbers paying tax in 1984–85 under the Budget proposals, increasing the number in the income range below £5,000 a year from 5.0 million to 5.5 million.