§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer, further to his reply of 14 November 1988,Official Report, column 517, concerning annex C of "Inland Revenue Statistics", whether he will publish in the Official Report a table showing for each year since 1959 the tax plus national insurance contribution threshold and break-even points for a married man on (i) average manual earnings and (ii) average earnings of all occupations; and if he will include (a) an estimate for 1989–90 based on the comparable earnings figures for April 1989 and (b) figures for the lowest decile of manual earnings in 1978–79 and 1988–89.
§ Mr. LilleyAvailable information is given in the tables. The "tax and national insurance contribution threshold" is the level of earnings above which the married man first pays income tax or class 1 national insurance contributions.
The "break-even point" is the value of earnings at which the amount of income tax and national insurance contributions paid is equal to the money received through child benefit or family allowance. It therefore gives the level of earnings above which the family pays more income tax plus national insurance contributions than it obtains in benefits for children.
Estimates in table 1 for 1989–90 are based on the projected figures for average manual earnings and average earnings of all occupations, assuming 7.5 per cent. growth on 1988–89.
Corresponding figures for the "tax and national insurance contribution threshold" and the "break-even point" as a percentage of the lowest decile of male manual earnings in April 1978 and April 1988 are given in table 2.
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Lowest decile of male manual earnings in 1978–79 and 1988–89 April New Earnings Survey Lowest decile of male manual earnings £ per week Threshold as percentage of lowest decile of male manual earnings Break-even point as percentage of lowest decile of male manual earnings 1978 52.8 33.1 81.0 1988 127.7 32.1 82.2
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing the estimated direct revenue cost in income tax at the standard and higher rates in the full year at current rates of (a) mortgage interest relief, (b) life assurance pensions relief. (c) retirement annuity premium relief and (d) investment income relief of occupational pension funds.
§ Mr. LilleyAvailable estimates for 1988–89 are given below.
Estimated direct revenue cost 1988–89 £ million Mortgage interest relief 5,500 —of which relief at the excess over the basic rate 340 Life assurance premium relief 470 Employees' contributions to occupational pension schemes allowed as a deduction for income tax purposes 1,700 Employees' contributions to occupational pension schemes not treated as taxable benefits in kind in the hands of the employees 2,600 Retirement annuity premium relief 450 —of which relief at the excess over the basic rate 100 Relief on investment income of occupational pension funds (assuming relief at the basic rate) 4,400
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what would be the saving to the revenue in the current financial year if(a) mortgage interest relief and (b) other non-personal allowances were progressively clawed back at the rate of 50 per cent. of income in excess of the higher rate threshold.
§ Mr. LilleyIt is estimated that the direct revenue yield in a full year at 1989–90 levels of income of withdrawing(a) mortgage interest relief and (b) other main reliefs from higher rate taxpayers at the rate of 50 per cent. on income in excess of the higher rate threshold is:
£ million (a) Mortgage interest relief 700 (b) Retirement annuity relief (including payments by employees), relief for Class IV National Insurance contributions, employees' superannuation contributions, charitable covenants and business expansion scheme relief 650 Estimates are based on a projection of the 1986–87 survey of personal incomes and are provisional; they assume that relief is withdrawn against liability to the higher rate of tax of 40 per cent. not just against liability to the excess of the higher rate over the basic rate.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what would be the saving to the revenue in the current financial year if personal allowances were clawed back for the purpose of higher tax at the rate of 50 per cent. on income in excess of the higher rate threshold.
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§ Mr. LilleyI regret that the information requested could be provided only at disproportionate cost.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) whether he will publish in theOfficial Report a table showing for those with and those without investment income in 1988–89 the numbers in each income band up to a lower limit of £100,000 benefiting from mortgage interest relief; and if he will provide an estimate for 1989–90;
(2) whether he will publish in the Official Report tables showing the estimated number of tax units under age 65 years in each income band up to a lower limit of £100,000 in receipt of mortgage interest relief in the current financial year and the percentage with investment income; and if he will also distinguish between single persons, one-earner and two-earner married couples.
§ Mr. LilleyThe available information is in the tables It is not possible to provide reliable estimates in all the detail requested not to provide separate figures for those under 65. Estimates are subject to revision.
Tax units1 receiving mortgage interest relief by range of total income 1988–89 (thousands) Range of total income with no investment income with investment income Total Up to £5,000 490 200 690 £5,000–£10,000 430 1,400 1,830 £10,000–£15.000 290 2,270 2,560 £15,000–£20,000 160 1,550 1,710 £20,000–£25,000 70 960 1,030 £25,000–£30,000 50 430 480 £30,000 + 50 750 500 Total 1,540 7,560 9,100 1 Single people and married couples.
Tax units1 receiving mortgage interest relief bv range of total income 1988–89 (thousands) Range of total income with no investment income with investment income Total Up to £5,000 440 200 640 £5,000–£ 10,000 420 1,280 1,700 £10,000–£ 15,000 270 1,990 2,260 £15,000–£20,000 160 1,720 1,880 £20,000–£25,000 120 1,080 1,200 £25,000–£30,000 60 550 610 £30,000 + 60 950 1,010 Total 1,530 7,770 9,300 1 Single people and married couples.