Income Tax (Hansard, 19 December 1986)

§ Mr. Penhaligon
asked the Chancellor of the Exchequer what percentage share of income tax was paid by the top 0.25 per cent., 0.5 per cent. and 0.75 per cent. of income earners for each of the years since 1979.

§ Mr. Norman Lamont
Information for the years 1978–79 to 1983–84 (the latest year for which reliable estimates are available) is as follows: The analysis is of single people and married couples and the quantiles are determined by reference to income tax liability.

Quantile shares of income tax

Per cent.

Quantile group of tax units

Top 0.25 per cent. Top 0.5 per cent. Top 0.75 per cent.

1978–79 5.6 8.0 9.7

1979–80 5.1 7.3 9.0

1980–81 5.4 7.7 9.4

1981–82 5.5 7.9 9.7

1982–83 5.9 8.4 10.2

1983–84 5.6 8.0 9.8

Tax units¹ receiving mortgage interest relief by range of total income—1986–87

Range of total income (£'000) Numbers receiving mortgage relief² ('000) Average value of relief per mortgagor (£) Total cost of relief (£ million) Percentage of total cost (per cent.)

Under 4 690 350 240 5

4 to 5 110 360 40 1

5 to 6 240 390 90 2

6 to 7 270 400 110 2

7 to 8 410 430 180 4

8 to 9 490 450 220 5

738W

§ Mr. Penhaligon
asked the Chancellor of the Exchequer what percentage of income tax was paid by those taxpayers whose earnings are (a) twice, (b) two and half times, (c) three times, (d) three and a half times, (e) four times and (f) 10 times the average wage and above; and what percentage of income tax was paid by each equivalent group in 1979.

§ Mr. Norman Lamont
The table shows the percentage shares of total income tax liability for single people and married couples with gross incomes for income tax purposes above the multiples of average earnings specified. The figures for 1978–79 are based on the survey of personal incomes for that year. For 1986–87 they are based on a projection from the 1983–84 survey and are therefore provisional. I regret that it is not possible to make reliable projections of the percentage of income tax liability for taxpayers with incomes 10 times average earnings and above.

Shares of income tax liability

Per cent.

Gross income¹ 1978–79 1986–87

2 and above 24.1 31.1

2½ and above 16.6 22.6

3 and above 12.4 17.0

3½ and above 9.9 13.4

4 and above 8.1 10.8

10 and over 1.9 —

¹ As multiples of average earnings based on estimated mean earnings for full time adult males of £92.90 per week for 1978–79 and £213–40 per week for 1986–87.

Quantile shares of income tax
Per cent.
	Quantile group of tax units
	Top 0.25 per cent.	Top 0.5 per cent.	Top 0.75 per cent.
1978–79	5.6	8.0	9.7
1979–80	5.1	7.3	9.0
1980–81	5.4	7.7	9.4
1981–82	5.5	7.9	9.7
1982–83	5.9	8.4	10.2
1983–84	5.6	8.0	9.8

Tax units¹ receiving mortgage interest relief by range of total income—1986–87
Range of total income (£'000)	Numbers receiving mortgage relief² ('000)	Average value of relief per mortgagor (£)	Total cost of relief (£ million)	Percentage of total cost (per cent.)
Under 4	690	350	240	5
4 to 5	110	360	40	1
5 to 6	240	390	90	2
6 to 7	270	400	110	2
7 to 8	410	430	180	4
8 to 9	490	450	220	5

Shares of income tax liability
Per cent.
Gross income¹	1978–79	1986–87
2 and above	24.1	31.1
2½ and above	16.6	22.6
3 and above	12.4	17.0
3½ and above	9.9	13.4
4 and above	8.1	10.8
10 and over	1.9	—
¹ As multiples of average earnings based on estimated mean earnings for full time adult males of £92.90 per week for 1978–79 and £213–40 per week for 1986–87.