§ Mr. Chapmanasked the Chancellor of the Exchequer how much is paid in income tax by those whose earnings place them in the top 5 per cent. of taxpayers; and if he will estimate the additional yield from increasing income tax rates on people with such earnings by (i) 10 per cent. and (ii) 20 per cent.
§ Mr. Norman LamontThe top 5 per cent. of taxpayers (counting a married couple as one) are expected to pay about £12 billion in income tax in 1986–87. If higher rates of tax were increased by (i) 10 percentage points and (ii) 20 percentage points, they would pay additional tax of (i) £1.3 billion and (ii) £2.5 billion respectively. These estimates make no allowance for possible behavioural changes which might result from increased higher rates. They also assume no change to the basic rate of tax.