HC Deb 19 March 1990 vol 169 cc421-3W
Mr. Chris Smith

To ask the Chancellor of the Exchequer what was the investment income and earned income in (i) 1989–90, (ii) 1988–89 and (iii) 1978–79, expressed in cash terms and in constant prices of(a) the bottom 10 per cent., (b) the bottom 20 per cent., (c) the bottom 30 per cent., (d) the bottom 40 per cent.,

Table 1
Total investment income and earned income in cash terms
11978–79 1988–89 1989–90
Total income at cut-off point3 Investment income Earned income Total income at cut-off point3 Investment income Earned income Total income at cut-off point3 Investment income Earned income
Group of income tax payers2 £ p.a. £ billion £ billion £ p.a. £ billion £ billion £ p.a. £ billion £ billion
Top 1 per cent. 15,800 1.2 3.8 55,600 4.5 14.7 63,000 5.8 16.2
Top 5 per cent. 9,800 2.3 12.6 30,900 9.1 43.2 34,600 11.6 47.7
Top 10 per cent. 8,100 2.8 21.3 24,000 11.9 68.6 26,700 15.6 75.5
Top 20 per cent. 6,500 3.4 35.8 18,200 15.8 107.6 20,200 20.8 118.5
Top 25 per cent. 6,000 3.5 42.3 16,500 17.2 124.2 18,300 22.7 136.8
Top 40 per cent. 4,800 3.9 58.9 12,800 20.2 166.0 14,100 26.6 182.7
Top 50 per cent. 4,200 4.1 68.3 10,800 21.9 189.1 11,900 29.0 208.1
Bottom 70 per cent. 5,600 1.5 49.5 15,000 9.8 119.4 16,700 12.6 131.9
Bottom 50 per cent. 4,200 1.0 29.3 10,800 6.2 69.9 11,900 7.9 77.1
Bottom 40 per cent. 3,600 n/a 21.0 9,100 n/a 50.1 10,100 n/a 55.5
Bottom 30 per cent. 3,000 n/a 13.9 7,600 n/a 33.7 8,300 n/a 37.2
Bottom 20 per cent. 2,400 n/a 8.2 6,100 n/a 20.0 6,800 n/a 22.3
Bottom 10 per cent. 1,900 n/a 3.5 4,600 n/a 8.7 5,100 n/a 9.9
All taxpayers — 5.1 97.6 — 28.1 259.0 — 36.9 285.2
Number of taxpayers (millions) 21.4 — — 21.2 — — 21.4 — —
1 Estimates for 1978–79 are not comparable with 1988–89 and 1989–90 as some income is not fully reported, for example, investment income on which tax is deducted at source and reported earnings are after deduction of occupational pension contributions.
2 Single people and married couples.
3 Minimum total income for top X per cent.; maximum total income for bottom X per cent.

n/a—Estimates not available.

Table 2: Total Investment Income and Earned Income in 1989–90 prices1
1978–792 1988–89 1989–90
Group of Income Tax Payers3 Total Income at cut-off point 4 Investment Income £ billion Earned Income £ billion Total Income at cut-off point 4 Investment Income £ billion Earned Income £ billion Total Income at cut-off point 4 Investment Income £ billion Earned Income £ billion
£ p.a. £ p.a. £ p.a.
Top 1 per cent. 36,200 2.7 8.7 59,800 4.8 15.8 63,000 5.8 16.2
Top 5 per cent. 22,500 5.3 28.9 33,200 9.8 46.5 34,600 11.6 47.7
Top 10 per cent. 18,600 6.4 48.8 25,800 12.8 73.8 26,700 15.6 75.5
Top 20 per cent. 14,900 7.8 82.0 19,600 17.0 115.7 20,200 20.8 118.5
Top 25 per cent. 13,700 8.0 96.9 17,700 18.5 133.6 18,300 22.7 136.8
Top 40 per cent. 11,000 8.9 135.0 13,800 21.7 178.5 14,100 26.6 182.7
Top 50 per cent. 9,600 9.4 156.5 11,600 23.5 203.3 11,900 29.0 208.1
Bottom 70 per cent. 12,800 3.4 113.4 16,100 10.5 128.4 16,700 12.6 131.9
Bottom 50 per cent. 9,600 2.3 67.2 11,600 6.7 75.2 11,900 7.9 77.1
Bottom 40 per cent. 8,200 —5 48.1 9,800 —5 53.9 10,100 —5 55.5
Bottom 30 per cent. 6,900 —5 31.9 8,200 —5 36.2 8,300 —5 37.2
Bottom 20 per cent. 5,500 —5 18.8 6,600 —5 21.5 6,800 —5 22.3
Bottom 10 per cent. 4,400 —5 8.0 4,900 —5 9.4 5,100 —5 9.9
All taxpayers — 11.7 223.7 — 30.2 278.5 — 36.9 285.2
1 Data inflated by financial year on financial year increase in RPI.
2 Estimates for 1978–79 are not comparable with 1988–89 and 1989–90 as some income is not fully reported, for example, investment income

(e) the top 50 per cent., (f) the top 40 per cent., and (g) the top 10 per cent. of all taxpayers; and if he will give the minimum and maximum figures of each income band in this table, together with the minimum and maximum figures for the bands listed in his answer of 20 February, Official Report, columns 681–82.

Mr. Lilley

Available information is given in the tables. Estimates for 1988–89 and 1989–90 are based on projections of the 1987–88 survey of personal incomes and are provisional. These estimates are subject to a large degree of uncertainty since some investment income on which tax is deducted at source is not reflected in the survey.

Information on the investment income of the bottom 1.0 per cent., 20 per cent., 30 per cent. and 40 per cent of taxpayers is not available.

on which tax is deducted at source and reported earnings are after deducted of occupational pension contribution.

3 Single people and married couples.

4 Foodnote 3 for previous table.

—5 Estimates not available.