§ Mr. BattleTo ask the Chancellor of the Exchequer if, further to his answer of 2 May,Official Report, column 296, he will estimate the effect on Treasury revenues in 1991–92 and in a full year of introducing a higher rate band of income tax of 50 per cent. on taxable incomes over £36,705.
§ Mr. MaudeCompared with the income tax regime considered in the previous answer, the revenue yield at 1991–92 levels of income of introducing the rates of income tax shown in the table would be about £0.1 billion lower in 1991–92, and about £0.2 billion lower in a full year. In rounded terms the total yield, compared with the income tax regime for 1991–92 proposed in the Budget, would be about £1 billion in 1991–92 and about £2 billion in a full year. The estimates do not take account of the consequential effect on capital gains tax, nor do they allow for any behavioural effects that might result from such an increase.
Taxable income (£) Rate per cent. 1 to 23,700 25 23,701 to 36,705 40 Over 36,705 50 Taxable income is income subject to tax from all sources after deducting allowances and reliefs.