HC Deb 01 May 1984 vol 59 cc116-7W
Mr. Tim Smith

asked the Chancellor of the Exchequer what is his estimate of the total amount of taxable income upon which income tax will be levied in 1984–85; what is his estimate of the tax that will be paid; what were the corresponding figures, in each case, in 1978–79; and if he will express these latter figures in 1984–85 prices.

Mr. Moore

[pursuant to his reply, 26 April 1984, c. 605]: Estimates of personal income subject to income tax are shown in the table. The figures for 1978–79 are those recorded in the survey of personal incomes for that year. Provisional estimates for 1984–85 are based on a projection from the 1981–82 survey of personal incomes (SPI). Estimates of the accrual of income tax include adjustments for income tax liabilities outside the scope of the SPI.

£ billion
1978–79 1978–79 at1984–85 prices* 1984–85*
Personal income subject to income tax‡ 106.0 189.7 194.0
Accrual of income tax 19.1 34.2 33.9
* Provisional.
† Using the GDP deflator.
‡ Before deducting allowances and other reliefs.

Mr. Tim Smith

asked the Chancellor of the Exchequer what is his estimate of the total amount of taxable profits upon which corporation tax will be levied in 1984–85; what is his estimate of the corporation tax which will be paid; what were the corresponding figures, in each case, in 1978–79; and if he will express these latter figures in 1984–85 prices.

Mr. Moore

[pursuant to his reply, 26 April 1984, c. 605]: A forecast of corporation tax in 1984–85 was published in the Financial Statement and Budget report. These receipts arise from profits earned in diverse accounting periods, but mostly from profits in 1983. Similarly, receipts in 1978–79 arose largely, but not solely, from profits in 1977. Estimates of the income of companies and financial institutions are published in the National Income and Expenditure Blue Book.

The figures on this basis are as follows:

£ billion
1977 1977 at 1983 prices* 1983
Company income† 27.7 51.7 1978–79 at 1984–85 60.7
1978–79 prices‡ 1984–85
Corporation tax receipts‡ 3.9 7.0 8.4
* Using the GDP deflator.
†Company income arising in the United Kingdom, as defined for the national accounts and published in the National Income and Expenditure Blue Book. This comprises gross trading profits, net of losses, before providing for depreciation and stock appreciation, and rent and non-trading income.
‡ Mainstream and advance corporation tax receipts, including corporation tax on capital gains and corporation tax paid on North sea incomes.