Income Tax (Hansard, 17 May 1988)

§ Ms. Mowlam
To ask the Chancellor of the Exchequer how many people were paying income tax, detailed at each tax banding, during tax year 1988–89.

§ Mr. Norman Lamont
On the basis of the Budget proposals for income tax, it is estimated that 19.7 million
416W
and (b) for a married couple as a percentage of average earnings for each of the years 1958, 1963,1968,1973,1978, 1983 and 1988.

§ Mr. Norman Lamont
The information is in the table:
single people and married couples will be liable to income tax at the basic rate only and 1.2 million will be liable at the higher tax rate of 40p.

§ Mr. Sackville
To ask the Chancellor of the Exchequer what is his latest estimate of the revenue effect of cutting the top rates of income tax to a single higher rate of 40 per cent.

§ Mr. Roger King
To ask the Chancellor of the Exchequer what is his latest estimate of the revenue effect of cutting the top rates of income tax to a single higher rate of 40 per cent.

§ Mr. Norman Lamont
Table 4.1 of the Financial Statement and Budget Report gives the latest estimates.
417W
The abolition of rates above 40 per cent. is expected to reduce income tax receipts by £965 million in 1988–89 and £2,070 million in 1989–90 compared with an indexed base.

§ Mr. Wigley
To ask the Chancellor of the Exchequer what recent representations he has received concerning changes in the income tax regime arising from the Budget.

§ Mr. Norman Lamont
I refer the hon. Member to the answer I gave on 14 April to the hon. Member for Ynys Môn (Mr. Jones) at column230.

§ Mr. Bowis
To ask the Chancellor of the Exchequer how many higher rates of income tax have been eliminated since 1979.

Mr. John M. Taylor
To ask the Chancellor of the Exchequer how many higher rates of income tax have been eliminated since 1979.

§ Mr. Norman Lamont
Since 1979 the number of higher rates has been reduced from nine to just one. In addition, the investment income surcharge has been abolished.

Single People Married Couples Single People and Married Couples

million percentage¹ million percentage¹ million percentage¹

Not liable to income tax 9.20 28 2.50 8 11.70 36

Liable to income tax at the basic rate only 9.40 29 10.30 32 19.70 60

Liable to income tax at the higher rate 0.25 1 1.00 3 1.25 4

¹ Percentage of all single people and married couples.

I regret that corresponding information for counties and English regions is not available. Estimates of the number of taxpayers in 1985–86, the latest year for which regional information is available are given in the table.

Number of taxpayers in 1985–86

Thousands

Region Liable at basic rate³ Liable at higher rates⁴

All tax units¹ Single Married All tax units¹ Single Married

North 1,000 410 580 30 5 25

Yorkshire & Humberside 1,570 650 920 55 10 45

North West 2,070 990 1,080 75 10 65

East Midlands 1,310 590 710 40 5 35

West Midlands 1,700 810 890 60 10 50

East Anglia 660 290 370 35 5 30

South East 6,200 3,370 2,830 480 85 395

South West 1,490 690 800 70 10 55

Wales 800 360 440 30 5 25

Scotland 1,690 770 920 75 10 65

Northern Ireland 430 210 220 20 5 15

United Kingdom² 19,210 9,280 9,930 970 160 815

¹ Married couples count as one unit.

² Includes members of the Forces and Merchant Navy and a small number of civil servants serving abroad who have not been allocated to regions.

³ Excludes taxpayers who are only liable to composite rate tax.

	Single People	Married Couples	Single People and Married Couples
	million	percentage¹	million	percentage¹	million	percentage¹
Not liable to income tax	9.20	28	2.50	8	11.70	36
Liable to income tax at the basic rate only	9.40	29	10.30	32	19.70	60
Liable to income tax at the higher rate	0.25	1	1.00	3	1.25	4
¹ Percentage of all single people and married couples.

Number of taxpayers in 1985–86
Thousands
Region	Liable at basic rate³	Liable at higher rates⁴
	All tax units¹	Single	Married	All tax units¹	Single	Married
North	1,000	410	580	30	5	25
Yorkshire & Humberside	1,570	650	920	55	10	45
North West	2,070	990	1,080	75	10	65
East Midlands	1,310	590	710	40	5	35
West Midlands	1,700	810	890	60	10	50
East Anglia	660	290	370	35	5	30
South East	6,200	3,370	2,830	480	85	395
South West	1,490	690	800	70	10	55
Wales	800	360	440	30	5	25
Scotland	1,690	770	920	75	10	65
Northern Ireland	430	210	220	20	5	15
United Kingdom²	19,210	9,280	9,930	970	160	815
¹ Married couples count as one unit.
² Includes members of the Forces and Merchant Navy and a small number of civil servants serving abroad who have not been allocated to regions.
³ Excludes taxpayers who are only liable to composite rate tax.