§ Mr. Wheelerasked the Chancellor of the Exchequer what estimate he has of the revenue accruing in the current financial year as a result of the 60 per cent. top rate of income tax; and what estimate he has made of the comparable yield from a 50 per cent. top rate.
§ Mr. Norman LamontThe tax liability in 1986–87 accruing from the top rate of income tax of 60 per cent. is about £1.6 billion. If this rate and the 55 per cent. rate were reduced to 50 per cent., the ex ante direct revenue cost in a full year at 1986–87 income levels would be about £350 million. This estimate makes no allowance for any behavioural effects.