Capital Gains Tax (Hansard, 17 May 1988)

§ Mr. Gordon Brown
To ask the Chancellor of the Exchequer if he will give the capital gains tax paid by tax units on marginal rates of income tax of(a) 60 per cent., (b) 55 per cent., (c) 50 per cent. and (d) 45 per cent. in 1987–88 and the projected capital gains tax receipts for each of these categories in 1988–89 together with the amount forgone as a result of the 1988–89 budget changes.

Shares of income tax payers' total income before and after tax

Financial Year Total income before tax Total income after tax

Bottom 50 per cent. Bottom 60 per cent. Bottom 50 per cent. Bottom 60 per cent.

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

1978–79 30.4 29 40.0 39 26.5 32 34.4 42

1983–84 48.6 27 64.1 35 42.6 29 55.4 38

1984–85 53.0 27 69.6 35 46.8 29 60.7 37

1985–86¹ 59.0 26 77.5 35 52.2 29 67.8 37

1986–87^{1 2} 62.5 26 82.4 34 55.4 28 72.2 37

1987–88^{1 2} 67.0 26 88.5 34 59.7 28 78.0 36

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

§ Mr. Gordon Brown
To ask the Chancellor of the Exchequer what proportion of income will be paid in tax by the top 1 per cent., 5 per cent,. 10 per cent., and the bottom 50 per cent. of tax payers in 1988–89.

§ Mr. Norman Lamont
[holding answer 25 April 1988]: Estimates are as follows:
432W

§ Mr. Norman Lamont
[holding answer 18 April 1988]: The latest information available relates to capital gains realised by individuals and trusts in 1985–86 and is not sufficient to permit analyses at the levels of detail requested. Based on preliminary (and still provisional) analyses of that information the capital gains tax payable by individuals with an income tax marginal rate of 40 per cent. or more in 1985–86 on capital gains realised by them in 1985–86 is estimated to be about £650 million. Under the 1988 Budget proposals, it is projected that the capital gains tax payable on gains realised in 1988–89 by individuals with a marginal income tax rate in 1988–89 of 40 per cent. will be about £800 million. The amount of capital gains tax on such gains forgone from these individuals as a result of the changes proposed in the 1988 Budget is estimated to be about £50 million. The figures for 1988–89 take into account tax on gains which may have been realised in 1987–88 following Budget day but which would otherwise have been realised in 1988–89.

Shares of income tax payers' total income before and after tax
Financial Year	Total income before tax	Total income after tax
	Bottom 50 per cent.	Bottom 60 per cent.	Bottom 50 per cent.	Bottom 60 per cent.
	Amount £ billion	Share per cent.	Amount £ billion	Share per cent.	Amount £ billion	Share per cent.	Amount £ billion	Share per cent.
1978–79	30.4	29	40.0	39	26.5	32	34.4	42
1983–84	48.6	27	64.1	35	42.6	29	55.4	38
1984–85	53.0	27	69.6	35	46.8	29	60.7	37
1985–86¹	59.0	26	77.5	35	52.2	29	67.8	37
1986–87^{1 2}	62.5	26	82.4	34	55.4	28	72.2	37
1987–88^{1 2}	67.0	26	88.5	34	59.7	28	78.0	36
¹ Provisional: includes estimates of occupational pension contributions and investment income not reported to tax offices.