Taxes (Hansard, 26 January 1989)

§ 122. Mr. Hoyle
To ask the Chancellor of the Exchequer if he will publish the figures showing the total taxes paid by average earners in each financial year from 1978–79 to the present day.

§ Mr. Norman Lamont
I refer the hon. Member to the reply that I gave to the hon. Member for Hornchurch (Mr. Squire) on 10 January at columns633–56.

§ 130. Mr. Cummings
To ask the Chancellor of the Exchequer how much a person on half average earnings pays as a proportion of his total income in all direct and indirect taxes including value added tax and national insurance.

§ 132. Mr. Steinberg
To ask the Chancellor of the Exchequer how much a person on half average earnings pays as a proportion of his total income in all direct and indirect taxes including value added tax and national insurance.

139. Mr. Ted Garrett
To ask the Chancellor of the Chancellor how much a person on half average earnings pays as a proportion of his total income in all direct and indirect taxes including value added tax and national insurance.

§ Mr. Norman Lamont
Reliable estimates of indirect tax payments are not available for this level of income.

§ 133. Mr. Jack Thompson
To ask the Chancellor of the Exchequer how much a person on average earnings pays as a proportion of his total income in all direct and indirect taxes including value added tax and national insurance.

§ 134. Mr. Martlew
To ask the Chancellor of the Exchequer how much a person on average earnings pays as a proportion of his total income in all direct and indirect taxes including value added tax and national insurance.

§ Mr. Norman Lamont
I refer the hon. Members to the reply that I gave to the hon. Member for Nottingham, North (Mr. Allen) on 20 January at column357.

§ Mr. Riddick
To ask the Chancellor of the Exchequer how much revenue from composite rate tax on investment income the Treasury received in the last financial year(a) in total, (b) from people with tax liabilities and (c) from people without tax liabilities.
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§ Mr. Norman Lamont
Total receipts of composite rate tax from savings institutions in 1987–88 were £3.1 billion after the set-off of about £0.4 billion of tax already paid on income received by them under deduction of income tax. Of the £3.5 billion composite rate tax accounted for by the savings institutions, about £450 million was due in respect of interest that would not have been liable to tax in the hands of its recipients in the absence of a composite rate system.

§ Mr. Riddick
To ask the Chancellor of the Exchequer how much revenue the Treasury would receive if composite rate tax was levied on national savings, taking the last financial year as an example(a) in total and (b) as a proportion of total composite rate tax revenue.

§ Mr. Norman Lamont
National Savings are excluded from the composite rate scheme in order to provide a convenient means for non-taxpayers to receive interest without deduction of non-reclaimable tax. The rate would tend to reduce if there was an extension of its scope to investments favoured by non-taxpayers, but the size of the reduction following such an extension is uncertain. However, net interest paid in 1987–88 on which savings institutions accounted for tax at composite rate totalled about £10.7 billion; interest on National Savings was about £1.4 billion payable gross and subject to tax if the recipient is a taxpayer, and about £1.7 billion not subject to tax.

§ Mr. Riddick
To ask the Chancellor of the Exchequer what proportion of total tax revenue to the Treasury is accounted for by composite rate tax.

§ Mr. Norman Lamont
About 2.8 per cent. in 1987–88.

§ Mr. David Shaw
To ask the Chancellor of the Exchequer what estimate he has of the revenue cost of reducing capital gains tax to a flat rate of 25 per cent. and of raising the capital gains tax exemptions limit from £5,000 to £10,000 in 1989–90 and 1990–91.

§ Mr. Norman Lamont
[holding answer 23 January 1989]: The reduction in liability to capital gains tax arising from gains realised by individuals and trusts in 1989–90 is estimated to be about £450 million. The estimate allows for an increase in disposals in response to the reduction in effective rate of tax but does not allow for any short term effects such as might arise between the announcement of the proposed change and its coming into effect.