HC Deb 19 October 1988 vol 138 cc916-9W
Mr. Grocott

To ask the Chancellor of the Exchequer what proportion of Exchequer revenues from direct taxation came from each quintile of income groups(a) before the 1988 Budget and (b) after the 1988 Budget.

Mr. Norman Lamont

Estimates of the percentage distribution of income tax liability in recent years including 1987–88 (pre-1988 Budget) and 1988–89 (post-1988 Budget) were given in my reply to the hon. Member for Birkenhead (Mr. Field) on 28 July at column488. Estimates covering revenue from all direct taxation are not available.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer (1) whether he will publish in theOfficial Report a table showing for those above and those below age 65 years the estimated number of tax units and their tax liability in the current financial year in each range of total income up to a lower limit of £100,000 divided into single persons and one-earner and two-earner married couples; and if he will include the number of females within each category and their tax liability;

(2) whether he will publish in the Official Report tables showing for those above and for those below pensionable age, the estimated number of tax units paying income tax and their income tax liability as a proportion of their total income in a full year at 1988–89 rates, by range of total income up to a lower limit of £100,000, distinguishing between single persons, one-earner and two-earner married couples; and if he will add figures showing the likely effect of his proposals for the separate taxation of husbands and wives on the numbers of tax units and the proportion paid in tax.

Mr. Norman Lamont

Available estimates are given in the tables. All estimates are based on a projection of the 1985–86 survey of personal incomes and are provisional. Under the present system a married woman's income is treated as her husband's and taxed as if it belonged to him. Separate estimates for single females are provided in the tables. Comparable estimates after the introduction of independent taxation of husbands and wives are not available. However estimates of gains in 1990–91 are published in the Inland Revenue Budget press release "Independent Taxation of Husband and Wife".

Number of tax units paying income tax and tax liability by range of total income, 1988–89
Single Males
Taxpayers under 65 Taxpayers aged 65 and over
Total income (lower limit) £ per annum Number of units liable to pay tax ('000s) Tax liability (£ million) Tax liability as a proportion of total income (Percentage) Number of units liable to pay tax ('000s) Tax liability (£ million) Tax liability as a proportion of total income (Percentage)
2,000 170 10 1.7 — — —
3,000 360 80 6.2 60 10 2.9
4,000 360 160 10.0 70 20 6.9
5,000 430 290 12.5 50 30 10.5
6,000 470 430 14.1 30 20 12.7
7,000 450 500 14.7 20 20 14.4
8,000 390 510 15.6 10 20 15.3
9,000 440 690 16.7 20 20 16.0
10,000 600 1,100 16.7 30 60 18.1
12,000 510 1,180 17.3 10 40 20.2
15,000 290 900 18.3 20 70 20.8
20,000 160 730 19.9 20 100 23.6
30,000 50 450 25.4 10 80 28.5
50,000 20 510 32.3 1— 100 36.1
1 Less than 5,000.

Number of tax units paying income tax and lax liability by range of total income, 1988–89
Single Females
Taxpayers under 65 Taxpayers aged 65 and over
Total income (lower limit) £ per annum Number of units liable to pay tax ('000s) Tax liability (£ million) Tax liability as a proportion of total income per cent. Number of units liable to pay tax ('000s) Tax liability (£ million) Tax liability as a proportion of total income per cent.
2,000 180 10 1.5 — — —
3,000 440 90 6.1 170 20 2.7
4,000 450 190 9.5 190 60 7.1
5,000 560 360 11.9 100 50 9.5
6,000 520 450 13.3 80 60 12.5
7,000 370 390 14.4 60 70 14.1
8,000 310 410 15.5 30 40 15.3
9,000 230 350 16.2 40 60 16.0
10,000 290 530 16.9 50 110 17.9
12,000 250 570 17.4 40 110 19.7
15,000 120 370 18.7 40 140 21.0
20,000 80 390 21.2 30 170 23.6
30,000 20 190 27.2 10 150 29.2
50,000 10 130 31.9 10 490 37.4

Number of tax units paying income tax and tax liability by range of total income, 1988–89
Married couples without wife's earned income
Taxpayers under 65 Taxpayers aged 65 and over
Total income (lower limit) £ per annum Number of units liable to pay tax ('000s) Tax liability (£ million) Tax liability as a proportion of total income per cent. Number of units liable to pay lax ('000s) Tax liability (£ million) Tax liability as a proportion of total income per cent.
2,000 — — — — — —
3,000 1— 2— 3.2 — — —
4,000 110 10 2.3 — — —
5,000 150 50 5.8 120 20 2.2
6,000 230 120 8.0 130 50 5.7
7,000 260 180 9.5 70 40 8.1
8,000 330 290 10.5 80 70 9.5
9,000 320 360 11.7 40 40 11.5
10,000 720 1,020 12.9 50 80 14.2
12,000 770 1,520 14.7 50 100 16.6
15,000 610 1,700 16.1 50 160 18.4
20,000 440 1,870 18.3 30 140 21.4
30,000 160 1,460 24.2 30 250 26.8
50,000 70 1,730 31.0 10 330 34.3
1 Less than 5,000
2 Less than £5 million

Number of tax units paying income tax and tax liability by range of total income, 1988–89
Married couples with wife's earned income
Taxpayers under 65 Taxpayers aged 65 and over
Total income (loner limit) £ per annum Number of units liable to pay tax (000's) Tax liability (£ million) Tax liability as a proportion of total income per cent. Number of units liable to pay tax (000's) Tax liability (£ million) Tax liability as a proportion of total income per cent.
2,000 — — — — — —
3,000 — — — — — —
4,000 10 —1 1.4 — — —
5,000 20 10 4.2 20 —1 1.5
6,000 70 10 3.3 20 10 3.6
7,000 110 40 4.8 40 10 5.1
8,000 170 90 6.5 50 30 5.6
9,000 190 150 7.9 40 30 7.8
10,000 590 580 8.9 80 80 9.6
12,000 1,060 1,590 11.1 70 140 13.9
15,000 1,660 3,780 13.1 110 270 15.6
20,000 1,470 5,460 15.6 70 290 18.2
30,000 480 3,460 20.1 20 200 23.9
50,000 100 2,300 28.1 10 350 31.1
1 Less than £5 million