HC Deb 03 March 1989 vol 148 cc349-53W
Mr. Alexander

To ask the Chancellor of the Exchequer if he will tabulate the income tax thresholds and respective rates of income tax for each financial year since 1959–60 for the United Kingdom; if he will provide similar information available to him for the Isle of Man; and if he will make a statement.

Mr. Norman Lamont

[holding answer 27 February 1989]: The main thresholds and rates in the United Kingdom and the Isle of Man for every fifth year since 1959–60 are given in the tables. Complete information on all personal reliefs, allowances and rates of income tax in the United Kingdom 1959–60 to 1988–89 is published in The Taxes Acts, volume 2 (Income tax, corporation tax and capital gains tax), tables A-N. Information on income tax rates and thresholds in the Isle of Man is published in The Isle of Man Tax Amendment Acts.

Income tax thresholds and rales in the United Kingdom, 1959–60 to 1969–70
Year Personal allowance Earned income relief Standard1 rate Reduced rates small income: Marginal Small in-come:
Single £ Married £ per cent. £ per cent. Limit £ Fraction Limit £ Fraction
1959–60 140 240 2/9 of earned income up to £4,005 38.75 60 @ 8.75 300 2/9 405 2/5
150 @ 21.25
1/9 of next £5,940 of earned income maximum relief: £1,550 150 @ 31.25
1964–65 200 320 as above 38.75 100 @ 20.00 450 2/9 680 ½
200 @ 30.00
1969–70 255 375 as above 41.25 260@ 30.00 450 2/9 710 ½
1 Surtax was charged up until 1972–73, details of rates and thresholds are published in table N, volume 2 of the Taxes Acts.

Income Tax Thresholds and Rates in the United Kingdom, 1974–75 to 1988–89
Personal allowance Rates of income tax Rates and thresholds of investment income surcharge 1
Year Single Married Taxable income Rate Invest Rate
£ £ £ Percentage £ Percentage
1974–75 625 865 1–4,500 33
4,501–5,000 38 1–1,000 Nil
5,001–6,000 43 1,001–2,000 10
6,001–7,000 48 Over 2,000 15
7,001–8,000 53
8,001–10,000 58
10,001–12,000 63
12,001–15,000 68
15,001–20,000 73
Over 20,000 83
1979–80 1,165 1,815 1–750 225
751–10,000 30 1–5,000 Nil
10,001–12,000 40 Over 5,000 15
12,001–15,000 45
15,001–20,000 50
20,001–25,000 55
Over 25,000 60
1984–85 2,005 3,155 1–15,400 30
15,401–18,200 40
18,201–23,100 45
23,101–30,600 50
30,601–38,100 55
Over 38,100 60
1988–89 2,605 4,095 1–19,300 25
Over 19,300 40
1Investment income surcharge was abolished in 1984–85.
2 Reduced rate of income tax.

Income tax rates and thresholds in the Isle of Man, 1959–60 to 1988–89
Year Personal allowance Earned income allowance Tax rates1
Single Married Taxable income Rate
£ £ £ per cent.
1959–60 200 350 quarter of earned 0–250 11.25
income up to £1,200 251–500 00.15
one fifth of excess 501–750 18.75
(maximum £460) over 750 22.50
1964–65 225 425 as above 0–250 10.00
251–500 15.00
over 500 21.25
1969–70 275 525 quarter of earned income (maximum £600) as for 1964–65
1974–75 550 850 quarter of earned income (maximum £900) all taxable income: 21.25
1979–80 1,040 1,645 quarter of earned income (maximum £1,100) all taxable income: 20.50
1984–85 1,690 2,880 quarter of earned income (maximum £1,550) all taxable income: 20.00

Year Personal allowance Earned income allowance Tax rates1
Single Married Taxable income Rate
£ £ £ per cent.
1988–89 3,600 7,200 suspended 0–6,000 15
over 6,000 20
1 Plus Surtax on sliding scale 4.16–30 per cent, on income over £2,500 (top rate at £20,000).