Income Tax (Hansard, 25 July 1988)

§ Mr. Frank Field
To ask the Chancellor of the Exchequer if he will list the number and proportion of income tax payers in each of the following tax categories, the number and proportion claiming mortgage tax relief, the average value of relief per mortgagee, the total cost of the relief and the percentage of the total cost for each group(a) up to £5,000 per year; (b) £5,000 to £7,500 per year; (c) £7,500 to £10,000 per year; (d) £10,000 to £12,500 per year; (e) £12,500 to £15,000 per year; (f) £15,000 to £17,500 per year; (g) £17,500 to £20,000 per year; (h) £20,000 to £25,000 per year; (i) £25,000 to £30,000 per year; (j) £30,000 to £40,000 per year; (k) £40,000 to £50,000 per year and (l) over £50,000 per year.

§ Mr. Norman Lamont
Provisional estimates for 1988–89, based on projections of the 1985–86 survey of personal incomes and the 1985 family expenditure survey, are given in the table. The estimate of the cost of mortgage interest relief is based on the general level of mortgage interest rates in July 1988.
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Number of tax units paying tax and number receiving mortgage interest relief by range of total income 1988–89

Range of total income Number of tax units¹ paying tax (thousands) Percentage Number of tax units¹ with mortgage relief² (thousands) Percentage Average value of relief per mortgagor (£) Cost of relief (£ million) Percentage

Up to £5,000 2,550 12 per cent. 690 8 300 210 5

£5,001 to £7,500 3,690 18 470 5 360 170 4

£7,501 to £10,000 3,320 16 830 10 400 330 8

£10,001 to £12,500 2,890 14 1,210 14 450 550 13

£12,501 to £15,000 2,280 11 1,230 14 480 590 14

£15,001 to £17,500 1,620 8 1,020 12 490 510 12

£17,501 to £20,000 1,260 6 870 10 490 430 10

£20,001 to £25,000 1,590 7 1,110 13 510 570 13

£25,001 to £30,000 690 3 470 6 630 300 7

£30,001 to £40,000 600 3 440 5 780 340 8

£40,001 to £50,000 180 1 120 1 900 110 3

Over £50,000 230 1 140 2 1,020 140 3

Total 20,900 100 8,600 100 490 4,250 100

¹ Single persons and married couples

² Including about ½ million non-taxpaying tax units

§ Mr. Mullin
To ask the Chancellor of the Exchequer if he will list the rates of income tax for each year from 1979.

§ Mr. Norman Lamont
(holding answer 21 July 1988]: The information is in the following table:

Rates of Income Tax 1978–79 to 1988–89

Period Per cent.

Reduced rate

1978–79 to 1979–80 25

Basic rate

1978–79 33

1979–80 to 1985–86 30

1986–87 29

1987–88 27

1988–89 25

Higher rate

1978–79 40, 45, 50, 55, 60, 65, 70, 75, 83

1979–80 to 1987–88 40, 45, 50, 55, 60

1988–89 40

Investment income surcharge

1978–79 10, 15

1979–80 to 1983–84 15

Number of tax units paying tax and number receiving mortgage interest relief by range of total income 1988–89
Range of total income	Number of tax units¹ paying tax (thousands)	Percentage	Number of tax units¹ with mortgage relief² (thousands)	Percentage	Average value of relief per mortgagor (£)	Cost of relief (£ million)	Percentage
Up to £5,000	2,550	12 per cent.	690	8	300	210	5
£5,001 to £7,500	3,690	18	470	5	360	170	4
£7,501 to £10,000	3,320	16	830	10	400	330	8
£10,001 to £12,500	2,890	14	1,210	14	450	550	13
£12,501 to £15,000	2,280	11	1,230	14	480	590	14
£15,001 to £17,500	1,620	8	1,020	12	490	510	12
£17,501 to £20,000	1,260	6	870	10	490	430	10
£20,001 to £25,000	1,590	7	1,110	13	510	570	13
£25,001 to £30,000	690	3	470	6	630	300	7
£30,001 to £40,000	600	3	440	5	780	340	8
£40,001 to £50,000	180	1	120	1	900	110	3
Over £50,000	230	1	140	2	1,020	140	3
Total	20,900	100	8,600	100	490	4,250	100
¹ Single persons and married couples
² Including about ½ million non-taxpaying tax units

Rates of Income Tax 1978–79 to 1988–89
Period	Per cent.
Reduced rate
1978–79 to 1979–80	25
Basic rate
1978–79	33
1979–80 to 1985–86	30
1986–87	29
1987–88	27
1988–89	25
Higher rate
1978–79	40, 45, 50, 55, 60, 65, 70, 75, 83
1979–80 to 1987–88	40, 45, 50, 55, 60
1988–89	40
Investment income surcharge
1978–79	10, 15
1979–80 to 1983–84	15