Income Tax (Hansard, 19 March 1990)

§ Mr. Chris Smith
To ask the Chancellor of the Exchequer what has been the annual reduction in income tax for a married man on earnings of(a) £5,000, (b) £10,000, (c) £15,000, (d) £20,000, (e) £30,000, (f) £35,000, (g) £40,000, (h) £45,000, (i) £50,000, (j) £100,000, (k) £150,000, (l) £300,000, (m) average male earnings and (n) three quarters of average male earnings as a result of the changes brought in by the 1988 budget.

§ Mr. Lilley
[holding answer 13 March 1990]: The information is in the table.

Income tax liability in 1989–90 compared with liability under 1987–88 lax rates with allowances and thresholds indexed to 1989–90 for a married man¹

Earnings Reduction

£ per annum £ per annum

5,000 58.40

10,000 158.40

²10,920 176.80

³14,560 249.60

15,000 258.40

20,000 358.40

30,000 740.75

35,000 1,115.50

40,000 1,615.50

45,000 2,300.25

50,000 3,050.25

100,000 13,045.00

150,000 23,045.00

300,000 5,304,5.00

¹ Calculations assume that the married man has no other forms of income and claims no reliefs or allowances other than the married man's allowance.

² Three quarters average male earnings.

³ Average male earnings for full time adult males in all occupations in 1989–90; £280.00 per week; in line with the assumptions in paragraph 3.02 of the 1989 Autumn Statement.

§ Mr. Chris Smith
To ask the Chancellor of the Exchequer what has been the proportion of income tax426W receipts received by the Exchequer (a) by payment at rates higher than the standard rate and (b) from those paying tax at rates higher than the standard rate in (i) 1978–79, (ii) 1987–88 and (iii) 1988–89.

§ Mr. Lilley
[holding answer 13 March 1990]: The information is in the table.

1978–79 1987–88 1988–89¹

Tax liability at higher rates as a percentage of total tax liability 9 18 17

Liability of higher rate taxpayers as a percentage of total tax liability 20 32 33

¹ Based on a projection of the 1987–88 Survey of Personal Incomes and therefore provisional.

§ Mr. David Nicholson
To ask the Chancellor of the Exchequer if he will list in theOfficial Report the proportion of income paid in income tax and national insurance combined by a married man with two children aged under 11 years on (a) average earnings, (b) one-and-a-half times average earnings, and (c) twice average earnings, in 1975–76, 1978–79 and the latest year for which figures are available.

§ Mr. Lilley
[holding answer 14 March 1990]: The information is in the table.

Percentage of earnings paid in income tax and National Insurance Contributions by a married man¹, with two children aged under 11

Multiples of average male earnings² 1 1.5 2

1975–76 25.8 29.0 31.4

1978–79 20.9 26.2 27.9

1989–90 20.8 23.1 25.7

¹ Calculations assume that the married man has no other forms of income and that he does not receive any tax allowances or reliefs other than the married man's allowance and child tax allowances. Child benefit is treated as negative income tax.

² Earnings are for full time males on adult rates in all occupations.

Income tax liability in 1989–90 compared with liability under 1987–88 lax rates with allowances and thresholds indexed to 1989–90 for a married man¹
Earnings	Reduction
£ per annum	£ per annum
5,000	58.40
10,000	158.40
²10,920	176.80
³14,560	249.60
15,000	258.40
20,000	358.40
30,000	740.75
35,000	1,115.50
40,000	1,615.50
45,000	2,300.25
50,000	3,050.25
100,000	13,045.00
150,000	23,045.00
300,000	5,304,5.00
¹ Calculations assume that the married man has no other forms of income and claims no reliefs or allowances other than the married man's allowance.
² Three quarters average male earnings.
³ Average male earnings for full time adult males in all occupations in 1989–90; £280.00 per week; in line with the assumptions in paragraph 3.02 of the 1989 Autumn Statement.

	1978–79	1987–88	1988–89¹
Tax liability at higher rates as a percentage of total tax liability	9	18	17
Liability of higher rate taxpayers as a percentage of total tax liability	20	32	33
¹ Based on a projection of the 1987–88 Survey of Personal Incomes and therefore provisional.

Percentage of earnings paid in income tax and National Insurance Contributions by a married man¹, with two children aged under 11
Multiples of average male earnings²	1	1.5	2
1975–76	25.8	29.0	31.4
1978–79	20.9	26.2	27.9
1989–90	20.8	23.1	25.7
¹ Calculations assume that the married man has no other forms of income and that he does not receive any tax allowances or reliefs other than the married man's allowance and child tax allowances. Child benefit is treated as negative income tax.
² Earnings are for full time males on adult rates in all occupations.