§ Mr. Chris SmithTo ask the Chancellor of the Exchequer (1) how many households will gain as a result of the proposals for independent taxation; how many could potentially gain because of the ability of husband and wife to swap investment income; and what is the income distribution of these households;
(2) how many households will pay less in taxation as a proportion of household income as a result of the introduction of independent taxation; and what is (a) the income distribution and (b) the regional distribution of these households.
§ Mr. Lilley[holding answer 12 February 1990]: Available information is given in the table. Estimates are based on a projection of the 1987–88 survey of personal incomes and are provisional.
Independent Taxation 1990–91 Total income of married couple Married couples1 Married couples2 £'000 '000 '000 0–5 — — 5–10 370 210 10–15 510 530 15–20 390 620 20–25 220 400 25–30 160 280 Over 30 1,350 940 All ranges 3,000 2,980 1 With reduction in income tax liability. Makes no allowance for possible behavioural changes and the effect on Capital Gains Tax receipts. 2 Who could reduce their income tax liability by transferring income bearing assets from husband to wife or vice versa. I regret that information on the regional distribution of gainers is not available.