§ Mr. BattleTo ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1991–92 of introducing higher rate bands of income tax equal to 45 per cent. on taxable incomes from £30,200 to £36,700 and 50 per cent. on taxable incomes over £36,700.
§ Mr. MaudeThe yield in a full year at 1991–92 levels of income of introducing the rates of income tax shown in the table is estimated to be about £1 billion.
Taxable income Rate £ percentage 1 to 23,700 25 23,700 to 30,200 40 30,200 to 36,700 45 36,700 and over 50 Taxable income is income subject to tax from all sources after deducting allowances and reliefs. The estimate does not take account of the consequential effect on capital gains tax nor does it allow for any behavioural effects that might result from such an increase.