§ Mr. Chris SmithTo ask the Chancellor of the Exchequer if he will give figures for the total number of married couples in each income group consistent with the answer to the hon. Member for Islington, South and Finsbury on 1 March,Official Report, column 268; and if he will give figures for the proportion of each income group which will (a) gain as a result of the proposals for independent taxation and (b) receive transitional relief because of the proposals for independent taxation.
§ Mr. Lilley[holding answer 22 March 1990]: Information is given in the table. These estimates update the figures given in reply to the previous question to allow for the levels of income tax allowances and thresholds announced in the 1990 Budget and more up-to-date information on income. The new estimates are based on a projection of the 1987–88 survey of personal incomes and are provisional.
109W
Independent Taxation 1990–91 Total income of married couples Married couples1 Married couples2 Total number of married couples liable to tax before independent taxation Proportion of married couples liable to tax before independent taxation (a) gain under independent taxation Percentage (b) receive transitional relief Percentage £'000s '000s '000s '000s 0-5 — — 20 0.00 10.00 5-10 410 180 1,150 36.00 9.00 10-15 520 520 2,330 22.00 4.00 15-20 400 620 2,550 16.00 1.00 20-25 240 420 1,770 14.00 3— 25-30 210 300 1,040 20.00 3— Over 30 1,570 1,080 1,850 85.00 3— All ranges 3,350 3,120 10,710 31.00 2.00 1 With a reduction in the combined income tax liability on their respective incomes. Makes no allowance for possible behavioural changes or 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. 3 Less than 0.5 per cent.