§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer if he will update the answer given to the hon. Member for Newcastle upon Tyne, East, of 6 March,Official Report columns 165–66, taking account of the changes announced in the 1991 Budget and giving estimates up to 1991–92.
§ Mr. MaudeLatest estimates of the annual change in income tax liability resulting from the changes in tax rates, allowances, thresholds, and the restriction of mortgage interest relief to the basic rate are in the table. The 1978–79
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Income Tax, NICS and indirect tax payments at multiples of average earnings, 1990–91 0.5 0.75 1 1.5 2 3 4 5 7 10 20 Married, both working Amounts, £ per week Income Tax 1.81 22.69 43.57 85.34 127.10 218.00 333.91 467.55 734.83 1,135.75 2,472.15 NICS 7.75 15.27 22.79 37.82 51.88 62.92 62.92 62.92 62.92 62.92 62.92 VAT — 14.23 19.66 30.51 — — — — — — — Other indirect — 24.01 28.13 36.37 — — — — — — — Total 9.56 76.20 114.15 190.04 178.98 280.92 396.83 530.47 797.75 1,198.67 2,535.07 Amounts, 1990–91 prices Income Tax 1.73 21.71 41.70 81.67 121.63 208.63 319.55 447.45 703.23 1,086.91 2,365.85 NICS 7.42 14.61 21.81 36.19 49.65 60.21 60.21 60.21 60.21 60.21 60.21 VAT — 13.62 18.81 29.20 — — — — — — — Other indirect — 22.98 26.92 34.81 — — — — — — — Total 9.15 72.92 109.24 181.87 171.28 268.84 379.77 507.66 763.45 1,147.13 2,426.06 Percentage of Earnings Income Tax 1.1 9.1 13.0 17.0 19.0 21.7 25.0 28.0 31.4 34.0 37.0 NICS 4.6 6.1 6.8 7.5 7.8 6.3 4.7 3.8 2.7 1.9 0.9 VAT — 5.7 5.9 6.1 — — — — — — — Other indirect — 9.6 8.4 7.3 — — — — — — — Total 5.7 30.4 34.2 37.9 26.8 28.0 29.7 31.8 34.1 35.9 37.9 Married 2 children Amounts, £ per week Income tax 1.52 22.40 43.28 85.05 144.21 177.85 411.49 545.13 812.41 1,213.33 2,549.73 NICS 11.39 18.91 26.43 31.46 31.46 31.46 31.46 31.46 31.46 31.46 31.46 VAT — 12.27 17.93 30.29 — — — — — — — income tax regime has been indexed to 1991–92 levels by reference to the statutory formula, and allowing for independent taxation.
For the purposes of these calculations the indexed regime of 1978–79 is applied directly to the income base of 1991–92. In practice, retention of the regime, indexed as appropriate, for the intervening years would have led to changes in the income base.
Average reduction in income tax per individual1 in 1991–92 compared with 1978–79 indexed regime Range of individual's income in 1991–92 (£) Average reduction at 1991–92 income levels £ Under 5,000 130 5,000 to 10,000 350 10,000 to 15,000 640 15,000 to 20,000 910 20,000 to 25,000 1,240 25,000 to 30,000 1,600 30,000 to 40,000 2,190 40,000 to 50,000 3,470 50,000 to 60,000 5,740 60,000 to 70,000 9,050 Over 70,000 34,640 Total 970 1 Individuals paying income tax under the 1978–79 indexed regime.