§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer what is the annual reduction in income tax for a person on an annual income of(a) £10,000, (b) £20,000, (c) £30,000, (d) £40,000, (e) £70,000 and (f) £150,000 as a result of income tax changes since the 1987 Budget.
§ Mr. Maude[holding answer 12 March 1991]: The information is in the following table, which compares the income tax liability in 1990–91 with liability under 1987–88 rates of tax allowances and thresholds indexed to 1990–91 levels by reference to the statutory formula. The calculations are for a single, non-aged person with no reliefs or allowances apart from the personal allowance.
Annual income £ Reduction in tax liability £ 10,000 169.60 20,000 369.60 30,000 502.25 40,000 1,337.50 70,000 6,583.00 150,000 22,583.00
§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer what is the average individual cumulative gain(a) in current prices and (b) in 1990–91 prices to those earning £5,000, £10,000, £15,000, £20,000, £25,000, £30,000, £40,000, £50,000, £60,000 and £70,000 a year as a result of changes in income tax since 1988.
§ Mr. Maude[holding answer 12 March 1991]: Latest estimates of the annual change in income tax liability 549W resulting from the changes in tax rates, allowances, and thresholds are in the table. The 1988–89 income tax regime has been indexed to 1990–91 levels by reference to the statutory formula, and allowing for independent taxation.
Average increase in income tax per individual in 1990–91 compared with 1988–89 indexed regime Range of individuals income in 1990–91(£) Average increase at 1990–91 prices (£) Under 5,000 0 5,000 to 10,000 0 10,000 to 15,000 0 15,000 to 20,000 0 20,000 to 25,000 0 25,000 to 30,000 40 30,000 to 40,000 200 40,000 to 50,000 225 50,000 to 60,000 225 60,000 to 70,000 225 Over 70,000 225 Total 10