Pre-tax Income (Hansard, 27 June 1988)

§ Mr. Nellist
To ask the Chancellor of the Exchequer if he will publish in theOfficial Report the amount and share

Group of taxpayers

Top 1 per cent. Top 5 per cent. Top 10 per cent. Top 25 per cent. Top 50 per cent. Top 75 per cent. All taxpayers

Year Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion

Gross incomes before tax

1978–79 5.1 5 15.0 15 24.3 24 45.9 45 72.6 71 91.4 89 102.8

1983–84 9.7 6 28.3 16 45.0 26 81.7 47 125.1 72 155.0 89 173.7

1984–85 10.9 6 31.4 17 49.6 26 89.3 47 135.8 72 168.5 89 188.8

1985–86¹ 13.6 6 36.4 17 56.7 27 101.8 48 154.2 72 190.0 89 213.1

1986–87¹ 14.6 6 39.4 17 61.4 27 110.2 48 166.5 73 204.6 89 228.9

1987–88¹ 16.1 7 43.3 17 67.4 27 121.0 49 182.1 73 223.4 90 249.0

1988–89¹ 18.2 7 48.5 17 75.3 27 134.8 49 202.7 73 248.9 90 277.4

Income tax liabilities

1978–79 2.3 11 4.9 24 7.0 34 11.5 57 16.4 81 19.4 96 20.2

1983–84 3.8 11 8.5 26 12.2 36 19.5 58 27.4 82 31.9 96 33.4

1984–85 4.2 12 9.3 26 13.3 38 21.1 60 29.2 82 33.9 96 35.4

1985–86¹ 5.5 14 11.2 28 15.4 39 23.9 61 32.8 83 37.8 96 39.5

1986–87¹ 5.9 14 12.1 29 16.6 40 25.6 61 34.9 83 40.1 96 41.9

1987–88¹ 6.6 15 13.2 30 17.9 41 27.2 62 36.8 84 42.2 96 44.1

1988–89¹ 5.7 13 12.5 28 17.3 39 27.0 61 37.0 83 42.6 96 44.5

¹ Provisional; includes estimates of occupational pension contributions and investment income not reported to tax offices.

§ Mr. Frank Field
To ask the Chancellor of the Exchequer if he will show, for the tax base existing in each year from 1979–80 to 1988–89, the difference between actual tax liabilities and liabilities under the indexed 1978–79 tax regime, for each of the following tax groups: top 1 per cent., top 2 to 5 per cent., top 6 to 10 per cent., top 11 to 20 per cent., top 21 to 30 per cent., top 31 to 40 per cent., top 41 to 50 per cent.

Reductions ( + )/increases (-) in income tax compared with 1978–79 indexed regime (£ billion)

Point of income distribution in 1988–89¹ Number of units paying tax in 1988–89² (millions) 1979–80 1980–81 1981–82 1982–83 1983–84 1984–85 1985–86 1986–87 1987–88

Top 1 per cent. 0.21 2.4 2.2 1.9 2.0 2.1 2.7 2.7 2.7 2.8 4.7

Top 2 to 5 per cent. 0.84 1.5 1.3 0.7 0.7 1.1 1.4 1.5 1.7 2.0 2.8

Top 6 to 10 per cent. 1.00 0.8 0.7 0.3 0.3 0.6 0.8 0.9 1.0 1.4 1.8

Top 11 to 20 per cent. 2.10 1.0 0.8 0.4 0.4 0.7 0.9 1.1 1.4 1.9 2.6

Top 21 to 30 per cent. 2.10 0.8 0.6 0.2 0.2 0.4 0.6 0.8 1.0 1.4 1.9

Top 31 to 40 per cent. 2.10 0.6 0.4 0.1 0.2 0.3 0.5 0.6 0.8 1.0 1.5

Top 41 to 50 per cent. 2.10 0.5 0.4 0.1 0.1 0.3 0.4 0.5 0.7 0.9 1.3

Bottom 50 per cent.³ 10.50 1.4 0.8 -0.6 -0.4 0.4 0.9 1.4 1.7 2.4 3.4

All 20.90 9.0 7.2 3.0 3.5 5.9 8.2 9.5 11.0 13.9 20.0

¹Based on 20,900,000 single people and married couples expected to pay tax in 1988–89 and excluding 1,100,000 who would pay tax under the revalorised 1978–79 regime.

98W of pre-tax income accruing to (a) the top 1 per cent., (b) the top 5 per cent., (c) the top 10 per cent., (d) the top 25 per cent., (e) the top 50 per cent., (f) the top 75 per cent. and (g) all taxpayers in each year 1978–79 to 1988–89, and the amount and share of tax liability for each of these groups.

§ Mr. Norman Lamont
Estimates are given in the tables for 1978–79 and 1983–84 to 1988–89. Information for other years could be provided only at disproportionate cost. All estimates of income are based on information reported to tax offices and collected through the annual surveys of personal incomes. For years before 1985–86, estimates exclude employees' contributions to occupational pension schemes and some investment income on which tax is deducted at source.

§ Mr. Norman Lamont
Estimates are not available in the precise form requested. For each financial year shown in the table the yield from the tax Regime in that year is compared with the yield under the 1978–79 tax regime All estimates are based on a provisional incomes base projected fronm the 1985–86 survey of personal oncomes and all tax regimes are indexed to 1988–89 levels accordings to the statutory formulas the comparison therefore allows for budgetary changes in income tax 1978–79 but not for changes in definition or any other factors which might affect the income base.
99W
²All information is in terms of tax units, i.e. married couples are counted as one and their incomes combined.
³Including reductions and/or increases for 10.5 million units paying tax in 1988–89 and other units who would pay tax under the revalorised regimes for each year.

Group of taxpayers
	Top 1 per cent.	Top 5 per cent.	Top 10 per cent.	Top 25 per cent.	Top 50 per cent.	Top 75 per cent.	All taxpayers
Year	Amount £ billion	Share per cent.	Amount £ billion	Share per cent.	Amount £ billion	Share per cent.	Amount £ billion	Share per cent.	Amount £ billion	Share per cent.	Amount £ billion	Share per cent.	Amount £ billion
Gross incomes before tax
1978–79	5.1	5	15.0	15	24.3	24	45.9	45	72.6	71	91.4	89	102.8
1983–84	9.7	6	28.3	16	45.0	26	81.7	47	125.1	72	155.0	89	173.7
1984–85	10.9	6	31.4	17	49.6	26	89.3	47	135.8	72	168.5	89	188.8
1985–86¹	13.6	6	36.4	17	56.7	27	101.8	48	154.2	72	190.0	89	213.1
1986–87¹	14.6	6	39.4	17	61.4	27	110.2	48	166.5	73	204.6	89	228.9
1987–88¹	16.1	7	43.3	17	67.4	27	121.0	49	182.1	73	223.4	90	249.0
1988–89¹	18.2	7	48.5	17	75.3	27	134.8	49	202.7	73	248.9	90	277.4
Income tax liabilities
1978–79	2.3	11	4.9	24	7.0	34	11.5	57	16.4	81	19.4	96	20.2
1983–84	3.8	11	8.5	26	12.2	36	19.5	58	27.4	82	31.9	96	33.4
1984–85	4.2	12	9.3	26	13.3	38	21.1	60	29.2	82	33.9	96	35.4
1985–86¹	5.5	14	11.2	28	15.4	39	23.9	61	32.8	83	37.8	96	39.5
1986–87¹	5.9	14	12.1	29	16.6	40	25.6	61	34.9	83	40.1	96	41.9
1987–88¹	6.6	15	13.2	30	17.9	41	27.2	62	36.8	84	42.2	96	44.1
1988–89¹	5.7	13	12.5	28	17.3	39	27.0	61	37.0	83	42.6	96	44.5
¹ Provisional; includes estimates of occupational pension contributions and investment income not reported to tax offices.

Reductions ( + )/increases (-) in income tax compared with 1978–79 indexed regime (£ billion)
Point of income distribution in 1988–89¹	Number of units paying tax in 1988–89² (millions)	1979–80	1980–81	1981–82	1982–83	1983–84	1984–85	1985–86	1986–87	1987–88
Top 1 per cent.	0.21	2.4	2.2	1.9	2.0	2.1	2.7	2.7	2.7	2.8	4.7
Top 2 to 5 per cent.	0.84	1.5	1.3	0.7	0.7	1.1	1.4	1.5	1.7	2.0	2.8
Top 6 to 10 per cent.	1.00	0.8	0.7	0.3	0.3	0.6	0.8	0.9	1.0	1.4	1.8
Top 11 to 20 per cent.	2.10	1.0	0.8	0.4	0.4	0.7	0.9	1.1	1.4	1.9	2.6
Top 21 to 30 per cent.	2.10	0.8	0.6	0.2	0.2	0.4	0.6	0.8	1.0	1.4	1.9
Top 31 to 40 per cent.	2.10	0.6	0.4	0.1	0.2	0.3	0.5	0.6	0.8	1.0	1.5
Top 41 to 50 per cent.	2.10	0.5	0.4	0.1	0.1	0.3	0.4	0.5	0.7	0.9	1.3
Bottom 50 per cent.³	10.50	1.4	0.8	-0.6	-0.4	0.4	0.9	1.4	1.7	2.4	3.4
All	20.90	9.0	7.2	3.0	3.5	5.9	8.2	9.5	11.0	13.9	20.0
¹Based on 20,900,000 single people and married couples expected to pay tax in 1988–89 and excluding 1,100,000 who would pay tax under the revalorised 1978–79 regime.