Income Tax

HC Deb 24 July 1986 vol 102 c463W

Sir Brandon Rhys Williams

asked the Chancellor of the Exchequer, further to the reply to the hon. Member for Kensington, Official Report, 3 June 1986, column 433 what is his estimate of the amount by which the income tax base was reduced in 1985–86 on account of all the income tax reliefs listed in the 1986 public expenditure White Paper.

Mr. Norman Lamont

The reliefs listed in the 1986 Public Expenditure White Paper reduced the 1985–86 income tax base by approximately £100 billion. This estimate excludes reliefs (such as capital allowances) used in arriving at net profits for Schedule D, and personal allowances for individuals who are not on Inland Revenue records because their incomes are below the tax thresholds.

Number of incomes and estimated average rates of income tax payable by range of total income 1986–87 (i) Single people or married couples both under 65
	Range of total income (lower limit) (£ per annum)
	2,000	3,000	4,000	5,000	6,000	7,000	8,000	9,000	10,000	12,000	15,000	20,000	30,000	50,000
Single people
Number of incomes (millions)	1.1	1.0	0.9	1.1	1.0	0.8	0.6	0.5	0.7	0.4	0.2	0.1	0.04	0.010
Income tax as proportion of total income (per cent.)	2.1	8.9	13.4	15.8	17.6	19.0	19.7	20.0	20.9	20.9	22.6	25.3	31.4	43.5
Married couples without wife's earned income
Number of incomes (millions)	0.2	0.2	0.2	0.2	0.3	0.4	0.4	0.4	0.7	0.6	0.4	0.2	0.1	0.053
Income tax as proportion of total income (per cent.)	—	0.8	4.8	7.8	11.4	13.0	13.5	15.4	17.3	18.5	19.6	22.8	30.5	43.4
Married couples with wife's earned income
Number of incomes (millions)	0.1	0.1	0.1	0.1	0.2	0.2	0.2	0.3	0.8	1.3	1.4	0.9	0.25	0.053
Income tax as proportion of total income (per cent.)	—	—	0.3	1.5	4.8	7.2	8.4	10.4	12.6	13.9	16.3	19.5	25.4	38.1

(i) Single people or married couples over 65
	Range of total income (lower limit) (£ per annum)
	2,000	3,000	4,000	5,000	6,000	7,000	8,000	9,000	10,000	12,000	15,000	20,000	30,000	50,000
Single people
Number of incomes (millions)	0.41	0.40	0.24	0.17	0.11	0.11	0.04	0.05	0.06	0.05	0.05	0.03	0.01	0.004
Income tax as proportion of total income (per cent.)	0.1	5.1	10.2	13.7	15.8	17.7	19.1	20.5	22.6	23.7	25.0	28.2	35.2	49.3