§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will bring up to date the information provided in the reply dated 16 March 1983,Official Report, column 164, concerning the amount of tax collected on income earning and other assets held overseas; and if he will include in the table an estimate for each year of the total value of such assets, whether or not they have been assessed to tax.
§ Mr. Lilley[pursuant to his reply, 28 July 1989, c. 1134]: Income tax charged on investment income received from overseas in the year ending 5 April 1987 and taxed under cases IV and V of schedule D is estimated to be in the region of £80 million before allowing for double taxation relief. The amount of such relief could be obtained only at disproportionate cost.
Income tax deducted from foreign company and public revenue dividends paid by or through United Kingdom paying and collecting agents in the year ended 5 April 1989 amounted to £192 million.
40WThese figures are, in each case, for the latest available year. Figures for earlier years are not covered by the reply of 16 March 1983 and could be provided only at a disproportionate cost. The value of the assets giving rise to these tax charges is not known.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) whether he will publish in theOfficial 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) husband 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;
(2) whether he will publish in the Official 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.
§ Mr. Lilley[pursuant to his replies, 28 July 1989, c. 1119–21]: Available estimates at 1989–90 income levels are in the tables. They are based on a projection of the 1986–87 survey of personal incomes and are, therefore, provisional. The distribution of wives earned income for 1988–89 is also given, because previous estimates have been revised. Further estimates by range of investment income and under independent taxation in 1990–91 could be provided only at disproportionate cost.
Distribution of wives1 Earned Income 1988–89 Income (lower limit) Number of wives with earned income in range Number of married couples (with wives earnings) with joint total income2 in range £ per annum ('000) ('000) 1 1,760 110 2,000 1,770 230 4,000 1,140 360 6,000 890 270 8,000 370 330 10,000 250 540 12,000 270 970 15,000 130 1,610 20,000 50 1,520 30.000 30 720 All ranges 6,660 6,660 1 Excluding some wives with earnings below the PAYE reporting limit and Self-employed wives making a net loss. 2 Combined income of husband and wife. 41W
Distribution of wives1 Earned Income 1989–90 Income (lower limit) Number of wives with earned income in range Number of married couples (with wives earnings) with joint total income2 in range £ per annum ('000) ('000) 1 1,660 110 2,000 1,710 210 4,000 1,060 340 6,000 910 250
Income (lower limit) Number of wives with earned income in range Number of married couples (with wives earnings) with joint total income2 in range £ per annum ('000) ('000) 8,000 470 280 10,000 270 400 12,000 310 810 15,000 180 1,540 20,000 80 1,810
Wife's Earnings Election 1989–90 Income (lower limit) By range of joint total income of married couple By range of wife's earned income By range of husband's total income1 £ per annum Number '000 Cost £ million Number '000 Cost £ million Number '000 Cost £ million 1 — — — — — — — 6.000 — — 65 10 —2 —2 10,000 — — 130 75 10 —3 15,000 — — 105 90 55 30 20,000 — — 65 110 175 135 30,000 395 355 30 70 155 190 All ranges 395 355 395 355 395 355 1 Husband's earned income plus husband and wife's investment income. 2Less than £1 million or 1,000. 3Less than £5 million.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (I) 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 together; 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 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
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Number of Tax Units Paying Income Tax and Tax Liability by Range of Total Income, 1989–90 Married Couples with Wife's Earned Income Taxpayers Under 65 Taxpayers Aged 65 and Over Total Income(Lower Limit) Number of Units Liable to Pay Tax Tax Liability Tax Liability As a Proportion of Total Income Number of Units Liable to Pay Tax Tax Liability Tax Liability as a Proportion of Total Income £ per annum (000s) (£ million) (percentage) (000s) (£ million) (Percentage) 2,000 — — — — — — 3,000 — — — — — — 4,000 (1) (2) 1.6 — — — 5,000 10 (2) 2.7 10 (2) 1.4 6,000 20 10 3.6 20 10 3.0 7,000 40 10 3.1 20 10 4.6 8,000 90 40 5.5 30 10 5.3 9,000 80 50 5.9 50 30 6.3 10,000 290 240 7.5 90 90 8.4 12,000 730 970 9.7 90 160 13.1 15,000 1,460 3,130 12.3 100 260 15.1 20,000 1,690 6,170 15.2 130 570 17.8 30,000 690 4,970 19.6 60 520 23.9 50,000 180 3,850 28.0 20 490 30.9 (1)Less than 5,000 (2)Less then £5 million
Income (lower limit) Number of wives with earned income in range Number of married couples (with wives earnings) with joint total income2 in range £ per annum ('000) ('000) 30,000 30 930 All ranges 6,680 6,680 1Excluding some wives with earnings below the PAYE reporting limit and self-employed wives making and net loss. 2Combined income of husband and wife. 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[pursuant to his replies, 28 July 1989, c. 1119–22]: Available estimates are given in the tables. All estimates are based on a projection of the 1986–87 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 women 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 were included in the Inland Revenue press release "Independent Taxation of Husbands and Wife", published on 15 March 1988.
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Number of tax units paying income tax and tax liability by range of total income, 1989–90 Married couples with wife's earned income Taxpayers under 65 Taxpayers aged 65 and over Total income(lower limit) Number of units liable to pay tax Tax liability Tax liability as a proportion of total income Number of units liable to pay tax Tax liability Tax liability as a proportion of total income £ per annum (000s) (£ million (percentage) (000s) (£ million) (Percentage) 2,000 — — — — — — 3,000 — — — — — — 4,000 60 10 8.7 — — — 5,000 150 40 4.6 40 (1) 1.0 6,000 240 100 6.1 90 20 3.9 7,000 230 140 8.0 120 60 6.9 8,000 210 130 7.2 100 70 8.2 9,000 270 220 8.5 80 80 10.3 10,000 600 710 10.7 90 120 12.3 12,000 870 1,530 13.0 90 190 16.0 15,000 860 2,220 15.2 80 240 18.1 20,000 560 2,300 17.5 50 250 20.5 30,000 230 2,020 23.3 30 300 26.6 50,000 100 2,610 31.4 20 510 32.9 (1) Less than £5 million.
Number of tax units paying income tax and tax liability by range of total income, 1989–90 Single females Taxpayers under 65 Taxpayers aged 65 and over Total income(lower limit) Number of units liable to pay tax Tax liability Tax liability as a proportion of total income Number of units liable to pay tax Tax liability Tax liability as a proportion of total income £ per annum 000s £ million percentage 000s £ million Percentage 2,000 70 —2 0.9 — — — 3,000 370 70 5.3 90 10 2.0 4,000 380 150 8.7 170 40 5.4 5,000 440 270 11.1 160 80 8.7 6,000 510 430 13.0 120 90 11.2 7,000 470 450 12.9 70 60 13.0 8,000 370 430 13.7 60 70 14.3 9,000 210 280 14.1 30 50 15.5 10,000 340 610 16.2 50 90 16.7 12,000 360 830 17.2 50 130 19.5 15,000 260 760 17.4 50 170 20.8 20,000 110 490 19.0 30 150 23.3 30,000 20 220 24.6 10 140 27.8 50,000 —1 110 33.2 10 210 33.7 1 Less than 5,000. 2Less than £5 million.
Number of tax Units Paying Income Tax and Tax Liability by Range of Total Income, 1989–90 Single Males Taxpayers under 65 Taxpayers aged 65 and over Total income(lower limit) Number of units liable to pay tax Tax liability Tax liability as a proportion of total income Number of units liable to pay tax Tax liability Tax liability as a proportion of total income £ per annum (000s) (£ million) (percentage) (000s) (£ million) (Percentage) 2,000 70 (1) 0.8 — — — 3,000 410 80 5.2 30 (1) 2.4 4,000 360 140 8.8 50 10 5.2 5,000 360 240 11.8 50 20 9.0 6,000 380 320 12.9 50 40 11.3 7,000 440 430 13.0 40 40 13.6 8,000 430 520 13.9 30 40 14.7 9,000 370 520 14.7 10 20 15.3 10,000 750 1,320 16.1 40 70 17.1 12,000 680 1,560 17.1 20 70 19.6 15,000 430 1,270 17.1 20 70 20.5 20,000 230 1,000 18.3 20 110 22.0 30,000 70 550 23.1 10 70 27.8 50,000 20 700 31.7 10 220 34.6 (1) Less than £5 million.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will publish in theOfficial Report his estimate of the yield from an increase of one pence in the standard rate of tax and in the employees' and 44W employers' national insurance contribution, respectively, in 1989–90; and if he will divide the tax figure to show the yield from earned and unearned incomes.
§ Mr. Lilley[pursuant to his reply, 28 July 1989, c. 1122]: An increase of 1p in the basic rate of income tax is 45W estimated to yield about £1.5 billion in a full year at 1989–90 income levels; 90 per cent. of the yield is estimated to be from tax on earned income.
An increase of 1percentage point in standard class 1 national insurance contribution rates is estimated to yield employee contributions of £2 billion and employer contributions of £2.25 billion in a full year at 1989–90 income levels.