HC Deb 25 July 1986 vol 102 cc665-9W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report tables showing for those above, and for those below, pensionable age the estimated number of taxable incomes and total yield of income tax at current rates by range of total income, distinguishing between single persons, married couples without wife's earned income and married couples with such income; and if he will provide corresponding information on the basis of the following rates of tax (a) single persons: allowance of £2,000 taxed

Number of tax units paying income tax and tax liability by range of total income 1986–87 Alternative system
Singles Married couple with wife's earnings Married couple without wife's earnings
Total income (lower limit) Number of units paying tax Tax yield Number of units paying tax Tax yield Number of units paying tax Tax yield
£ per annum '000s £ million '000s £ million '000s £ million
Taxpayers under 65
2,000 1,100 80 — — — —
3,000 960 220 — — — —
4,000 930 420 — — — —
5,000 1,100 780 210 20 110 10
6,000 980 1,000 330 80 160 40
7,000 820 1,100 440 170 200 80
8,000 580 1,000 410 240 220 140
9,000 480 990 360 310 320 280
10,000 700 1,800 730 930 800 1,000
12,000 430 1,500 610 1,200 1,300 2,700
15,000 240 1,200 440 1,500 1,400 4,600
20,000 100 810 230 1,400 860 5,300
30,000 40 582 100 1,200 250 3,000
50,000 10 410 40 1,300 50 1,800
Taxpayers aged 65 and over
2,000 410 40 — — — —
3,000 400 90 — — — —
4,000 240 100 — — — —
5,000 170 120 190 10 90 10
6,000 110 120 100 20 60 10
7,000 110 150 90 40 70 30
8,000 40 70 60 30 80 50
9,000 50 100 30 30 50 40
10,000 60 160 30 40 70 90
12,000 50 170 40 80 80 170
15,000 50 250 40 120 70 230
20,000 30 230 30 200 60 360
30,000 10 210 20 220 20 280
50,000 10 190 10 200 10 210

Number of tax units paying income tax and lax liability by range of total income 1986–87 Current system
Singles Married couple with wife's earnings Married couple without wife's earnings
Total income (lower limit) Number of units paying tax Tax yield Number of units paying tax Tax yield Number of units paying tax Tax yield
£ per annum '0OOs £ million '0OOs £ million '0OOs £ million
Taxpayers under 65
2,000 650 60 — — — —

at nil rate, £2,000 at 15 per cent., £10,000 at 28 per cent., £5,000 at 40 per cent. and four successive bands of £5,000 at an incremental rate of five percentage points to a maximum of 60 per cent., (b) married persons taxed as one unit: allowance of £2,000 to be exempt from tax, allowance of £3,000 taxed at nil rate, £3,000 at 15 per cent., £14,000 at 28 per cent., and three successive bands of £8,000 at an incremental rate of five percentage points to a maximum of 55 per cent., (c) the nil rate band to be reduced by 25 per cent. of the amount by which total income exceeds £6,000 and £10,000 in the case of single and married persons, respectively, on the same basis as the present age allowance and (d) all other allowances against income for tax purposes to be abolished.

Mr. Norman Lamont

The estimates are in the tables following. They are based on a projection of the 1983–84 survey of personal incomes to 1986–87. The estimates of the tax liabilities for the alternative tax regime are approximate, because the income corresponding to some tax reliefs, for example employees' superannuation contributions and reliefs for national savings, is not recorded in the survey.

Singles Married couple with wife's earnings Married couple without wife's earnings
Total income (lower limit) Number of units paying tax Tax yield Number of units paying tax Tax yield Number of units paying tax Tax yield
£ per annum '0OOs £ million '0OOs £ million '0OOs £ million
3,000 920 300 70 10 — —
4,000 920 560 210 50 10 —
5,000 1,100 940 180 90 40 10
6,000 980 1,100 320 250 140 50
7,000 820 1,200 420 430 180 110
8,000 580 970 410 470 200 160
9,000 480 910 360 530 310 320
10,000 700 1,600 730 1,400 800 1,100
12,000 430 1,200 610 1,500 1,300 2,400
15,000 240 920 440 1,500 1,400 3,800
20,000 100 580 230 1,200 860 4,000
30,000 40 440 100 1,100 250 2,300
50,000 10 340 40 1,300 50 1,600
Taxpayers aged 65 and over
2,000 60 — — — — —
3,000 390 70 — — — —
4,000 240 110 110 10 10 —
5,000 170 130 190 50 30 10
6,000 110 20 100 60 50 120
7,000 110 140 90 80 70 30
8,000 40 60 60 60 80 50
9,000 50 90 30 50 50 30
10,000 60 150 30 70 70 110
12,000 50 150 40 110 80 190
15,000 50 200 40 140 70 230
20,000 30 180 30 200 60 320
30,000 10 170 20 220 20 250
50,000 10 180 10 200 10 190

Mr. Raynsford

asked the Chancellor of the Exchequer if he will estimate the current annual value of (a) all income tax concessions and (b) all tax concessions approved since 1979 to the benefit of (a) the wealthiest 5 per cent. of the population of Great Britain and (b) the wealthiest 10 per cent. of the population of Great Britain.

Mr. Norman Lamont

I regret that it has not been possible to provide an answer before the summer recess; I shall write to the hon. Member and place a copy of the letter in the Library.

Mr. Ralph Howell

asked the Chancellor of the Exchequer, pursuant to his answer of 15 May, Official Report, column 564, if he will state (a) the total revenue obtained from income tax and national insurance at current and constant prices and using 1979 as 100 for each year from 1969–70 to 1985–86 and (b) the total revenue obtained from all taxation and national insurance on the same basis as (a).

Mr. Norman Lamont

The information requested is as follows:

Current prices At 1978–79 prices* Constant prices
£ million £ million 1978–79=100
Total revenue from income tax and social security contributions
1969–70 7,665 22,454 77
1970–71 8,771 23,739 81
1971–72 9,610 23,849 82
1972–73 10,233 23,448 80
1973–74 11,666 24,970 86
1974–75 16,370 29,325 101
1975–76 22,451 32,067 110
1976–77 25,927 32,660 112
1977–78 27,003 29,928 103
1978–79 29,166 29,166 100
1979–80 32,934 28,181 97

Current prices At 1978–79 prices* Constant prices
£ million £ million 1978–79=100
1980–81 39,327 28,356 97
1981–82 45,050 29,546 101
1982–83 49,177 30,136 103
1983–84 52,600 30,842 106
1984–85 55,219 31,084 107
†1985–86 60334 31,964 110
Total revenue from all taxation, social security contributions and royalties
1969–70 17,690 51.821 89
1970–71 19,315 52,276 89
1971–72 20,569 51,047 87
1972–73 21,882 50,141 86
1973–74 24,883 53,260 91
1974–75 31,818 56,998 97
1975–76 40,071 57,233 98
1976–77 46,346 58,382 100
1977–78 52,297 57,961 99
1978–79 58,485 58,485 100
1979–80 72,831 62,319 107
1980–81 85,721 61,808 106
1981–82 102,033 66,917 114
1982–83 110,729 67,854 116
1983–84 118,001 69,189 118
1984–85 128,301 72,224 123
†1985–86 138,918 73,597 126
* Using the GDP deflator.
† Provisional.

Total revenue from income tax and social security contributions comprises taxes paid by persons (net of tax credits), and national insurance, national health, redundancy fund and maternity fund contributions paid by employees and employers.

Total revenue from all taxations and social security contributions comprises taxes on income, expenditure and capital, national insurance, national health, redundancy fund and maternity fund contributions and royalties.

The figures are on a national accounts accruals basis.

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