HC Deb 23 January 1985 vol 71 cc449-51W
Dr. McDonald

asked the Chancellor of the Exchequer if he will publish information for 1984 showing for each European Economic Community country as well as the Organisation for Economic Co-operation and

Table 2
Level of income in £ sterling at which individuals become liable to income tax at 30 per cent. or at the rate nearest to 30 per cent.
Single person Tax rate per cent. Married couple Tax rate per cent. Married couple with two dependent children Tax rate per cent.
EEC
Belgium—excluding local income tax 4,685 31.3 6,335 31.3 6,335 31.3
—including local income tax 4,450 28.6 6,090 28.6 6,090 28.6
Denmark—excluding local income tax 8,740 28.8 8,740 28.8 8,740 28.8
—including local income tax 1,830 41.15 3,665 41.15 3,665 41.15
France 8,775 30.2 17,125 31.1 25,480 31.1
Germany 8,310 30 16,160 30 16,740 30
Greece 5,130 29 5,130 29 5,130 29
Ireland 2,360 35 See notes — See notes —
Italy 5,500 27 5,500 27 5,500 27
Luxembourg 6,860 30 12,805 30 14,880 31
Netherlands 7,375 32 9,250 32 9,250 32
United Kingdom 2,005 30 3,155 30 3,155 30
OECD outside EEC
Australia 9,125 30 9,125 30 9,125 30
Austria 2,740 27 3,000 27 3,000 27
Canada—excluding local income tax 23,385 27.5 25,830 27.5 26,790 27.5
—including local income tax 15,300 29.6 17,640 29.6 18,600 29.6
Japan—excluding local income tax 31,080 27 32,340 27 34,950 27
—including local income tax 21,050 29.7 21,050 29.7 23,190 29.7
New Zealand 2,080 31.5 2,080 31.5 2,610 31.5
Norway—excluding local income tax 14,750 30.5 17,270 30.5 17,700 30.5
—including local income tax 8,630 31.5 11,150 31.5 11,590 31.5

Development countries (a) the level of gross income in pounds sterling at which a single person becomes liable for income tax, (b) the starting rate of income tax, (c) the combined starting rate of income tax and any social security contributions and (d) separate figures on typical rates of local taxes where appropriate, together with information showing the level of income in pounds sterling at which (i) a single person, (ii) a married couple and (iii) a married couple with two children become liable to income tax at 30 per cent. on earned income in each country.

Mr. Moore

[pursuant to his reply, 20 December 1984, c. 325]: Information for all the EEC countries and a selection of OECD countries outside the EEC is given in the tables.

Table 1
Income tax thresholds in £ sterling—single persons
National income tax threshold Income tax rate Combined rate of income lax and social security contributions Rate of local income tax at national income tax threshold
£ per cent per cent per cent
EEC
Belgium 2,080 19.3 29 1.6
Denmark 1,830 13.7 19.05 27.45
France 4,050 10.8 22.3 —
Germany 2,085 18 35.55 —
Greece 1,870 6 16.6 —
Ireland 2,360 35 42.5 —
Italy 2,200 18 24.8 —
Luxembourg 2,845 12 24 —
Netherlands 2,590 15.4 35.35 —
United Kingdom 2,006 30 39 —
OECD outside EEC
Australia 3,350 26.7 26.7 —
Austria 2,425 21 32.85 —
Canada 4,360 15.5 19 7.4
Japan 3,435 10.5 19.5 4.5
New Zealand 665 20 20 —
Norway 4,750 3.5 13.8 23
Sweden 840 3 3 32.2
USA 2,860 11 17.7 1

Single person Tax rate per cent. Married couple Tax rate per cent. Married couple with two dependent children Tax rate per cent.
Sweden—excluding local income tax 12,020 32 12,020 32 12,020 32
—including local income tax 840 32.2 1,380 32.2 1,380 32.2
USA—excluding local income tax 21,965 30 28,485 28 30,270 28
—including local income tax 15,115 30 23,750 30 25,535 30

Notes:

  1. 1. All tax and social security figures used relate to the year 1984 or 1984–85 except for Belgium and France where 1983 figures, the latest available, have been used.
  2. 2. Conversions to sterling were made at the exchange rates prevailing on 15 January 1985. They may not fully reflect differences in purchasing power between sterling and the other currencies.
  3. 3. a. In the case of the married couples it is assumed that the income is wholly employment income of the husband.
  4. b. It is assumed that the United Kingdom employee is contracted in for national insurance.
  5. 4. a. The thresholds in tables I and II take account of personal reliefs, employment income reliefs and other standard reliefs as well as income tax reliefs for social security contributions where applicable.
  6. b. In table I, the combined rates of income tax and social security contributions take account of income tax relief for social security contributions, where applicable.
  7. c. Where local income tax is levied, typical rates have been used.
  8. 5. In Ireland, immediately above the threshold the married couple and married couple with two dependent children are liable to tax at a rate of 60 per cent. on the slice of income in excess of an exemption limit, if that is more favourable than tax computed in the normal way. The usual starting rate of 35 per cent. applies where income exceeds £5,020 in the case of a married couple and £4,770 in the case of a married couple with two dependent children.
  9. In Norway and Japan there are lower thresholds for the local income tax.