§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) whether he will publish in theOfficial Report tables showing for those above and for those below pensionable age, the estimated number of tax units with an investment income in 1988–89 by range of total income up to a lower limit of £100,000, distinguishing between single persons, one-earner and two-earner married couples together with aggregate and the average investment income in each case; and if he will provide separate figures for those with an investment income of more than £200;
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Taxable income Income tax rate per cent. DM £ Single Married couple 58,000 14,146 48 33 68,000 16,585 51 37 78,000 19,024 52 41 88,000 21,463 53 44 98,000 23,902 54 45 108,000 26,341 54 47 118,000 28,780 55 49 128,000 31,219 56 50 Notes:
1. The figures relate to 1987 to ensure compatibility with the figures given in the written answer of 22 October 1987.
2. Conversions to sterling have been made on the basis of OECD estimates of purchasing power parity.
3. The tax rates have been rounded.
4. The same rates apply for both one- and two-earner married couples.
5. Social security contributions, deductible in arriving at taxable income, are as follows:—
Old age insurance—9.35 per cent, of gross earnings, maximum deduction DM 6,395 (£1,560) pa.
Unemployment insurance—2.15 per cent, of gross earnings, maximum deduction DM 1,470 (£358) pa.
Health insurance—6.3 per cent, of gross earnings, maximum deduction DM 3,231 (£788) pa.
6. Child benefit, not included in computing taxable income, is payable as follows:—
- 50 DM (£12.20) per month for the first child
- 100 DM (£24.39) per month for the second child
- 220 DM (£53.66) per month for the third child
- 240 DM (£58.54) per month for each subsequent child
(2) whether he will publish in the Official Report tables showing for women above and for those below pensionable age, the estimated number of tax units with an investment income in 1988–89 by range of total income up to a lower limit of £100,000, distinguishing between single persons, one-earner and two-earner married couples, together with the average investment income in each case; and if he will provide separate figures for those with an investment income of more than £200.
§ Mr. Norman Lamont[holding answer 29 July 1988]: Available estimates are in the tables. All estimates are provisional and subject to a wide margin of error because 927W they are based on a projection of the 1985–86 survey of personal incomes and the coverage of investment income in the survey is incomplete. In some cases, investment income on which basic rate liability is satisfied by
Table 1 Single people and married couples with investment income 1988–89 Single people Married couples Total income without wife's earned income with wife's earned income (lower limit) Number Investment income Number Investment income Number Investment income £ per annum 000s total £ million average £ 000s total £ million average £ 000s total £ million average £ Aged under 65 5,000 2,700 1,500 540 1,100 580 530 520 270 520 10,000 1,600 1,200 760 2,000 1,200 600 2,900 1,800 620 20,000 170 430 2,590 350 390 1,110 1,300 1,200 920 30,000 50 340 6,960 140 440 3,130 460 960 2,080 50,000 20 330 21,000 60 730 11,900 100 930 9,120 All 4,540 3,800 840 3,650 3,340 920 5,280 5,160 980 Aged 65 and over 5,000 480 930 1,950 460 620 1,350 220 250 1,120 10,000 150 890 5,840 150 580 3,900 270 730 2,700 20,000 40 510 14,600 20 200 8,500 50 350 6,600 30,000 20 380 25,500 20 360 17,600 20 290 12,400 50,000 10 490 58,600 10 330 42,100 10 450 35,100 All 700 3,200 4,570 660 2,090 3,170 570 2,070 3,630
Table 2 Single people and married couples with investment income of more than £200 1988–89 Single people Married couples Total income without wife's earned income with wife's earned income (lower limit) Number Investment income Number Investment income Number Investment income £ per annum 000s total £ million average £ 000s total £ million average £ 000s total £ million average £ Aged under 65 5,000 2,000 1,400 680 760 550 720 330 250 760 10,000 1,300 1,200 940 1,500 1,100 750 2,200 1,700 780 20,000 130 420 3,390 250 380 1,510 970 1,200 1,220 30,000 40 340 8,050 110 430 3,950 370 950 2,560 50,000 10 330 24,800 50 730 13,800 90 920 10,000 All 3,480 3,690 1,060 2,670 3,190 1,190 3,960 5,020 1,270 Aged 65 and over 5,000 430 920 2,130 440 620 1,420 200 240 1,230 10,000 150 890 5,900 140 570 4,150 260 730 2,850 20,000 40 510 14,700 20 200 8,530 50 350 6,750 30,000 20 380 25,700 20 360 17,700 20 290 12,600 50,000 10 490 58,600 10 330 42,100 10 450 35,100 All 650 3,190 4,910 630 2,080 3,300 540 2,060 3,810 928W
Table 3 Single Females with investment income and married couples where the wife has investment income 1988–89 Single females Married couples Total income without wife's earned income with wife's earned income (lower limit) Number Investment income Number Investment income Number Investment income £ per annum 000s total £ million average £ 000s total £ million average £ 000s total £ million average £ Aged under 65 5,000 1,500 850 580 770 200 260 340 90 270 10,000 530 570 1,080 1,300 380 280 2,200 640 300 20,000 40 220 5,120 210 80 390 980 330 340 30,000 10 190 14,200 90 70 790 360 200 560 50,000 — 130 52,500 40 90 2,060 80 200 2,640 All 2,080 1,960 940 2,410 820 340 3,960 1,460 370 Aged 65 and over 5,000 360 750 2,070 310 180 580 140 70 540 10,000 110 640 5,860 100 130 1,290 200 200 990 20,000 20 320 16,600 20 50 2,730 40 90 2,300 30,000 10 290 28,400 20 100 6,750 20 100 4,730 50,000 10 390 61,700 10 80 11,900 10 130 11,000 All 510 2,390 4,690 460 540 1,170 410 590 1,440 deduction at source is not reported. No reliable estimates can be given for single people and married couples with total income of less than £5,000.
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Table 4 Single Females with investment income and married couples where the wife has investment income of more than £200 1988–89 Single females Married couples Total income without wife's earned income with wife's earned income (lower limit) Number Investment income Number Investment income Number Investment income £ per annum 000s total £ million average £ 000s total £ million average £ 000s total £ million average £ Aged under 65 5,000 1,100 800 740 400 160 400 170 70 430 10,000 410 560 1,360 790 310 390 1,300 550 410 20,000 30 220 6,440 90 70 800 490 280 580 30,000 10 190 15,000 30 70 2,030 170 180 1,070 50,000 — 130 52,600 20 90 4,550 40 190 4,330 All 1,550 1,900 1,230 1,330 700 2,170 1,270 590 Aged 65 and over 5,000 330 740 1,230 260 170 670 100 70 680 10,000 110 640 5,890 90 130 1,540 180 200 1,110 20,000 20 320 16,700 20 50 2,840 40 90 1,420 30,000 10 290 28,400 20 100 7,040 20 100 4,970 50,000 480 390 61,700 10 80 13,000 10 130 11,600 All 700 2,380 4,960 400 530 1,330 350 590 1,690