HC Deb 03 December 1991 vol 200 cc80-1W
Mr. Meacher

To ask the Chancellor of the Exchequer (I) what would be the revenue yield for(a) the first year and (b) in a full year, asssuming this is introduced at the beginning of 1991–92, and (c) in the first year and (d) in a full year, assuming this is introduced at the beginning of 1992–93, in Northern Ireland of national insurance contributions on unearned income at a rate of 9 per cent. for individuals under retirement age, subject to (i) a £3,000 exemption, (ii) a £3,500 exemption and (iii) a £4,000 exemption, respectively;

(2) what would be the revenue yield (a) in the first year and (b) in a full year, asssuming this is introduced at the beginning of 1991–92, and (c) in the first year and (d) in a full year, assuming this is introduced at the beginning of 1992–93, in Great Britain of national insurance contributions on unearned income at a rate of 9 per cent. for individuals under retirement age, subject to (i) a £3,000 exemption, (ii) a £3,500 exemption and (iii) a £4,000 exemption, respectively;

Mr. Maude

The yield in a full year at 1991–92 levels of income from a charge of 9 per cent. on investment income of individuals in the United Kingdom is estimated at:

Threshold £ Yield £ million
3,000 870
3,500 820
4,000 780

The amount of revenue collected in the first year would depend on the administrative arrangements for collecting such a charge.

The corresponding yield in 1992–93 would depend on the levels of investment income for that year.

I regret that it is not possible to provide separate information for Great Britain and Northern Ireland.

These estimates take no account of any possible behavioural changes following the introduction of such a charge.

Individuals aged under 65 with investment income over £3,000 in 1991–92
Basic rate taxpayers1 Higher rate taxpayers
Individual total income (£ per annum) Numbers (000s) Average2 (£) Numbers (000s) Average2 (£)
0–10,000 230 160 — —
10,000–20,000 340 280 — —
20,000–30,000 180 440 20 800
30,000–40,000 neg. — 120 800
40,000–50,000 — — 60 930
50,000 and over — — 160 2,990
1 Liable at basic rate only.
2 Average charge payable at a rate of 9 per cent.

I regret that it is not possible to provide information for Great Britain and Northern Ireland.

These estimates take no account of any possible behavioural changes following the introduction of such a charge.