HC Deb 01 May 1991 vol 190 cc210-1W
Mr. Forman

To ask the Chancellor of the Exchequer what would be the level of taxable income at which a 50 per cent. rate of income tax would need to be introduced in order to raise £750 million and £1,000 million, respectively.

Mr. Maude

If the tax bands proposed for 1991–92 were amended so that tax was charged at 50 per cent. on taxable income above £90,000, the additional yield of income tax for 1991–92 would be about £750 million. The corresponding level of taxable income for an additional yield of £1 billion would be £69,000. Taxable income is after deducting reliefs and allowances.

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer if he will estimate the number of taxpayers who have incomes below(a) £3,500 a year, (b) £4,000 a year, (c) £4,500 a year, (d) £5,000 a year and (e) £5,500 a year, giving figures separately for individuals and married couples.

Mr. Maude

The information requested is as follows:

Estimated numbers of taxpayers 1990–91
Thousands
Single people Husbands Wives
Income below
£3,500 230 0 350
£4,000 620 0 670
£4,500 1,110 0 990
£5,000 1,520 60 1,300
£5,500 1,940 190 1,590

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer what would be the effect on tax revenues in 1991–92 and in a full year of the introduction of a reduced rate band of income tax at 23 per cent. on the first(a) £1,000 and (b) £2,000 of taxable income.

Mr. Maude

The direct revenue costs in a full year at 1991–92 levels of income are estimated to be(a) £500 million and (b) £950 million.

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer if he will estimate the effect on tax revenues in 1992–93 and in a full year of indexing income tax personal allowances in line with earnings rather than prices, based upon current forecasts for earnings and inflation.

Mr. Maude

This will depend on real earnings growth in the period December 1990 to December 1991.

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer if he will publish a table estimating the tax benefit of the personal use of a company car for a married man with a non-earning wife with earnings of £40,000 per annum, assuming that the car is under four years old and its original market value is £18,000, with average business mileage in 1991–92.

Mr. Maude

For a car with original market value of less than £19,250 and average business mileage, the tax due from a higher rate taxpayer on the car benefit scale charges proposed for 1991–92 are in the table.

Car engine size Tax (£)
1400cc or less 820
1401 to 2000cc 1,060
2001cc or more 1,700

Direct effects of illustrative changes in Income Tax and Corporation Tax1
£ million cost/yield
Cost/yield in 1991–92 Cost/yield in 1992–93
Income Tax
Rates
Change basic rate by 1p2 1,900 2,000
Change higher rate by 1p 180 325
Allowances
Change personal allowance by £100 480 635
Change age-related personal allowances3 by £100 41 60
Change married couples allowance by £1004 220 290
Change age-related married couples allowances3 by £100 19 25

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