§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer if he will estimate for 1991–92 and for a full year the effect on Treasury revenues of introducing an indexed 1987–88 regime of higher rates and bands of income tax.
§ Mr. MaudeIf, for 1991–92, the higher rate of 40 per cent. was replaced by the basic rate limit and higher rate bands indexed from their 1987–88 levels, the yield would be about £2 billion in 1991–92 and about £4 billion in a full year. All other aspects of the 1991–92 income tax regime are assumed unchanged. The rates of tax would be:
Taxable income (£) Per cent. 1–23,400 25 23,401–26,700 40 26,701–33,300 45 33,301–43,700 50 43,701–54,100 55 Over 54,100 60 Taxable income is income subject to tax from all sources after deducting allowances and reliefs. No account is taken of possible behavioural changes or of any effect on receipts of capital gains tax.