Social Security (Taxation)

HC Deb 19 March 1985 vol 75 cc461-2W

Mr. Deakins

asked the Chancellor of the Exchequer what has been the change since 1978–79 in receipts from the taxation of social security benefits.

Mr. Moore

Estimates of the yield of income tax on current grants from general Government to the personal sector (in effect the yield from those social security benefits liable to tax) are shown for each calendar year to 1983 in table 9.6 of the 1984 edition of "UK National Accounts" (the CSO Blue Book). In this table, tax in respect of current grants is calculated by applying the individual's average rate of tax (that is the ratio of total tax due to total income liable to tax) to his or her receipt of taxable grants and summing over taxpayers.