§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer if he will give for those tax units on higher marginal rates of tax the number of gainers earning(a) less than £40,000, (b) £40,000 to £50,000, (c) £50,000 to £70,000, (d) £70,000 to £100,000 and (e) over £100,000; and if he will give for each of these categories the total reduction in tax liability resulting from the cut in the higher rates of tax, the basic rate and the changes in personal allowances and tax bands.
§ Mr. Norman Lamont[holding answer 21 April 1988]The information is given in the table. I regret that reliable estimates for those with income over £100,000 per year are not available as estimates are based on a projection of the 1985–86 survey of personal incomes. All estimates are provisional.
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Gains made by higher-rate tax units2 in 1988–89 from changes in income tax allowances, rates and thresholds in 1988 Budget Total income Number of higher rate tax units1 Reduction in tax liability Average3 reduction in tax liability ('000) (£ million) (£ per annum) Less than £40,000 980 670 690 £40,000–£50,000 170 290 1,700 £50,000–£70,000 135 470 3,470 Above £70,000 100 1,430 15,210 All higher rate taxpayers 1,380 2,860 2,070 1Married couples and single people. 2Tax units who would have been liable to tax at the higher rates under the 1987–88 tax regime indexed to 1988–89. 3Based on unrounded figures.