§ Mr. Meacherasked the Chancellor of the Exchequer, pursuant to his answer of 6 April, Official Report, columns 67–8, if he will give the gains per average person in each of the income ranges given from the Budget proposals (a) on an unindexed basis and (b) net of indexation.
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§ Mr. Norman Lamont[pursuant to his reply, 22 April 1987, c. 579]: The information is in the table.
Range of gross income Number of tax units1 in 1987–88 Average2 reduction in income tax liability in 1987–88 compared with An unindexed base An indexed base3 £ million £ £ Under 5,000 3.2 50 20 5,000 to 7,500 4.0 90 60 7,500 to 10,000 3.6 130 90 10,000 to 12,500 3.0 160 120 12,500 to 15,000 2.2 200 150 15,000 to 20,000 2.7 250 200 20,000 to 30,000 1.6 410 310 30,000 to 50,000 0.6 530 330 Over 50,000 0.16 620 180 All 21.2 170 120 1 All information is in terms of tax units i.e. married couples are counted as one and their incomes combined. 2 By reference to the number paying tax in 1987–88. 3 That is, the 1986–87 tax regime indexed (by 3.7 per cent.) to 198–88 levels by reference to the statutory formula.