HC Deb 28 July 1989 vol 157 cc1116-23W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing the gross and net aggregate rateable value of those offices in the City of London referred to in his answer of 14 November 1988, Official Report, columns 525–26, the current poundage, and his Department's estimate of the current rental and capital value per square foot.

Mr. Lilley

The table below provides, with one exception, the details requested. An estimate of the current capital value per square foot could not be produced without a disproportionate expenditure of time and resources.

amount of tax raised by (i) personal income taxes, (ii) national insurance contributions, (iii) capital taxes, (iv) corporate taxes, (v) indirect taxes and (vi) rates; and if he will give a forecast for the current financial year on a full-year basis.

Mr. Norman Lamont

The latest available data, using national income and expenditure account definitions, are:

1 FSBR Forecast.

2 Includes a small amount of income tax paid by companies.

3 Includes corporation tax on gains which is classified as a tax on capital in the national accounts.

4 Includes IBA levy.

5 Includes business rates.

6 Includes employers and employees NICs.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer if, further to his reply dated 10 April,Official Report. column 348, concerning the number of tax units and tax liability by range of total income, he will publish the underlying assumption concerning the increase in incomes together with his present estimate of the increase in average and median earnings in 1989–90 compared to 1988–89 and 1987–88 for manual and non-manual workers respectively.

Mr. Lilley

[holding answer 27 July 1989]: The information given in reply to the hon. Member on 10 April 1989 was based on a projection to 1989–90 levels of the 1986–87 survey of personal incomes. The assumptions used in the projection are consistent with those underlying the economic forecast given in chapter 3 of the 1989–90

Higher Rate Tax Units1 1989–90
(Thousands)
Range of income £ per year Single Married couple (wife not working) Married couple (both working) All2
Under 20,000 — — — —
20,000–25,000 10 0 0 10
25,000–30,000 60 80 70 210
30,000–50,000 110 250 500 860
Over 50,000 40 120 200 360
Total2 220 450 770 1,440
1 Counting a married couple as one and combining the partners' incomes.
2 Figures may not sum exactly due to rounding.

Total tax liability of Higher Rate Tax Units1 1989–90
(£ million)
Range of income £ per year Single Married couple (wife not working) Married couple (both working) All2
Under 20,000 — — — —
20,000–25,000 30 — — 30
25,000–30,000 380 470 410 1,260
30,000–50,000 970 2,300 3,910 7,180
Over 50,000 1,240 3,110 4,330 8,680
Total2 2,610 5,880 8,650 17,150
1 Counting a married couple as one and combining the partners' incomes.
2 Figures may not sum exactly due to rounding.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report tables showing for women above and for those below pensionable age, the estimated number of tax units paying income tax in 1989–90 directly or indirectly and the estimated amount of tax payable in a full year at the marginal rate, dividing the figures to show the amounts by range of total income up to a lower limit of £100,000 and distinguishing between single persons, one-earner and two-earner married couples; and if he will include tables showing his estimate of the amount of tax which would be

Financial Statement and Budget Report. It is not the practice to publish fprecasts of personal incomes and average earnings.

Mr. Austin Michell

To ask the Chancellor of the Exchequer what is his estimate of the change in the number of higher-rate taxpayers in the current financial year; and if he will publish in theOfficial Report a table showing his estimate of the distribution by range of total income and tax category together with the total tax liability.

Mr. Lilley

[holding answer 25 July 1989]: The number of married couples and single people liable to the higher rate of income tax is estimated to be 1,330,000 in 1988–89, and 1,440,000 in 1989–90. The tables show the distribution of those liable to higher rate tax in 1989–90 and their income tax liability by income and tax category.

Estimates are based on a projection of the 1986–87 survey of personal incomes and are provisional.

payable by such tax units in 1989–90 on the basis of separate taxation for husbands and wives as proposed for 1990.

Mr. Lilley

[holding answer 25 July 1989]: Estimates for single women are given in the tables. They are based on a projection of the 1986–87 survey of personal incomes and are provisional.

Under the present tax system a married women's income is treated as her husband's and taxed as though it belonged to him. The estimates requested for the tax liability on the income of married women under the present tax system and under independent taxation could be produced only at disproportionate cost.

Number of single females paying income tax and tax liability by range of total income, 1989–90
Aged 65 and over Aged under 65
Tax liability Tax liability
Total income (lower limit) Number total of higher rate taxpayers Number total of higher rate taxpayers
£ per annum ('000) (£ million) £ million ('000) (£ million) (£ million)
2,000 — — — 70 2 —
3,000 90 10 — 370 70 —
4,000 170 40 — 380 150 —
5,000 160 80 — 440 270 —
6,000 120 90 — 510 430 —
7,000 70 60 — 470 450 —
8,000 60 70 — 370 430 —
9,000 30 50 — 210 280 —
10,000 50 90 — 340 610 —
12,000 50 130 — 360 830 —
15,000 50 170 — 260 760 —
20,000 30 150 110 110 490 80
30,000 10 140 140 20 220 220
50,000 10 210 210 1— 110 110
Total 900 1,290 460 3,910 5,100 410
1Less than 5,000.
2Less than £5 million.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer (1) whether he will publish in theOfficial Report a table showing for wives with earned income on Inland Revenue records the estimated distribution of the number of such wives in 1989–90 by wife's total income and the couples' joint total income together with the estimated revenue loss from wife's earnings elections and the estimated further loss on the 1990–91 basis of separate taxation of husbands and wives;

(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 1989–90 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 what effect his proposals for the separate taxation of husbands and wives will have on the numbers of tax units and the proportion paid in tax by (a) one-earner and (b) two-earner married couples.

Mr. Lilley

[holding answer 25 July 1989]: I shall answer when resources permit.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report tables showing for those above and for those below pensionable age the estimated number of tax units in receipt of more than £200 gross in composite rate interest in 1987–88 and the average amount received, together with his estimates for 1989–90; and if he will divide the figures to show the amounts for those above and those below pensionable age by range of total income up to a lower limit of £100,000 and distinguishing between single persons, one-earner and two-earner married couples.

Mr. Lilley

Estimates for the years requested are not available.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report tables showing for those above and for those below pensionable age the estimated number of tax units in receipt of more than £200 gross in lettings and other incomes from property and the average amount received, together with his estimates for 1989–90; and if he will divide the figures to show the amounts for those above and those below pensionable age by range of total income up to a lower limit of £100,000 and distinguishing between single persons, one-earner and two-earner married couples.

Mr. Lilley

For information in respect of 1985–86 I refer the hon. Member to the answers provided to him in October last year—Official Report, 19 October 1988, columns 935–38. Estimates for 1988–89 are not yet available.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report tables showing for one-earner and two-earner married couples under 65 years and married couples over 65 years the number of tax units paying less and the number paying more tax in each income band up to a lower limit of £100,000 at 1989–90 rates of tax in the event of the proposed allowances for separate taxation of husbands and wives being replaced by a transferable allowance of £3,000 for each spouse; and if he will include figures of the consequential changes in tax yield.

Mr. Lilley

The estimates requested could be provided only at disproportionate cost.

Mr. Austin Mitchell

To 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 in receipt of more than £200 gross in National Savings accounts and bonds and the average amount received, together with his estimates for 1989–90; and if he will divide the figures to show the amounts for those above and those below pensionable age by range of total income up to a lower limit of £100,000 and distinguishing between single persons, one-earner and two-earner married couples;

(2) whether he will publish in the Official Report a table showing for direct tax allowances and reliefs listed in table 6.5 of Cm. 288-I, "The Government's Expenditure Plans", his estimate of the cost in a full year at current rates of incomes and tax for items which will cost the Exchequer £10 million or more.

Mr. Lilley

The information requested could be provided only at disproportionate cost.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report his estimate of the cost to the Exchequer of an increase of £100 in each of the allowances and reliefs for income tax at 1989–90 income and tax levels; and if he will provide corresponding figures on the basis of the 1990–91 regime for the independent taxation of husbands and wives.

Mr. Lilley

I refer the hon. Member to table 4.5 of the Autumn Statement 1988.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer (1) whether he will publish in theOfficial Report tables showing by range of total income up to a lower limit of £100,000, for those above and those below pensionable age and distinguishing between single persons, one-earner and two-earner married couples, the estimated saving to the Exchequer of abolishing all allowances and reliefs other than the basic single and married allowances; and if he will provide similar tables on the 1990 basis of separate taxation of husbands and wives;

whether he will publish in the Official Report a table showing the estimated number and direct revenue cost of wife's earnings elections in a full year by range of incomes at 1989–90 income and tax levels, together with tables for (i) husbands and (ii) wives showing (a) the numbers separately assessed by range of total income of the relevant spouse and (b) the aggregate total income of each spouse and the aggregate investment income of each spouse; and if he will add a table showing the additional direct revenue cost on the basis of the 1990–91 proposals for the separate taxation of husbands and wives;

(3) whether he will publish in the Official 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

Higher rate taxpayers1 with wife's earnings election 1989–90
Total Income (lower limit) Number With investment income With mortgage interest relief
Number Average Amount Number Average Amount
£ p.a. 000s 000s £ p.a. 000s £ p.a.
20,000 — — — — —
25,000 — — — — —
30,000 6 6 2,400 1 400
35,000 35 31 5,200 14 1,900
40,000 76 74 3,500 54 2,700
50,000 119 113 12,400 80 3,200
All 235 224 8,200 149 2,900
1 Married couples and single people.

Higher rate taxpayers—Single people 1989–90
Total Income (lower limit) Number With investment income With mortgage interest relief
Number Average Amount Number Average Amount
£p.a. 000s 000s £ p.a. 000s £ p.a.
20,000 5 5 13,800 — 900
25,000 62 52 10,100 32 2,400
30,000 56 51 7,900 39 3,300
35,000 23 20 11,200 15 3,400
40,000 29 25 12,000 22 3,600
50,000 44 42 37,000 22 3,600
All 219 194 15,700 130 3,200

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 together; and if he will include the number of females within each category and their tax liability;

(4) whether he will publish in the Official Report a table showing by range of income and tax status an estimate of the saving to the Exchequer in a full year from abolishing, respectively, the upper earnings limit for national insurance contributions and higher rate relief on mortgage interest;

whether he will publish in the Official Report his estimate of the yield from an increase of one penny in the standard rate of tax and in the employees' and employers' national insurance contribution, respectively, in 1989–90; and if he will divide the tax figure to show the yield from earned and unearned income.

Mr. Lilley

I shall answer when resources permit.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Repor, a table showing for (a) two-earner families with a wife's earnings election and (b) other higher-rate taxpayers by tax category, his estimate of the number and distribution of incomes, together with the average unearned income and average amount of mortgage interest relief in each income band in each category in the current financial year; and if he will add a table showing the gains and losses to the Exchequer from the application of separate taxation of husbands and wives as proposed for 1990.

Mr. Lilley

Provisional estimates for 1989–90 based on a projection of the 1986–87 survey of personal incomes are given in the table. Estimates of the effects of the introduction of independent taxation in 1990–91 were given in the Inland Revenue press release on independent taxation issued on 15 March 1988.

Higher rate taxpayers—Married couples with wife's earnings and no earnings election 1989–90
Total Income (lower limit) Number With investment income With mortgage interest relief
Number Average Amount Number Average Amount
£ p.a. 000s 000s £ p.a. 000s £ p.a.
20,000 — — — — —
25,000 73 69 4,800 8 1,000
30,000 203 188 3,100 130 2,700
35,000 100 96 3,500 74 3,100
40,000 78 76 7,600 50 2,900
50,000 76 74 13,300 57 3,200
All 531 503 5,600 319 2,900

Higher rate taxpayers—Married couples without wife's earnings 1989–90
Total Income (lower limit) Number With investment income With mortgage interest relief
Number Average Amount Number Average Amount
£p.a. 000s 000s £ p.a. 000s £ p.a.
20,000 — — — — —
25,000 80 71 4,400 25 1,700
30,000 101 93 3,700 65 3,000
35,000 70 66 3,800 50 3,200
40,000 85 79 6,300 57 3,100
50,000 116 111 17,100 75 3,100
All 452 420 7,900 271 3,000