§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer if he will update the tax revenue ready reckoner published in the 1990 autumn statement in the light of Budget changes.
§ Mr. MaudeUpdated estimates are given in the table.
213W
£ million cost/yield Cost/yield in 1991–92 Cost/yield in 1992–93 Change aged income limit by £200 2 4 Change all main allowances by 1 per cent.5 200 280 Change all main allowances by 10 per cent.5 increase (cost) 2,000 2,750 decrease (yield) 2,075 2,850 Basic rate limit Change basic rate limit by 1 per cent. 30 55 Change basic rate limit by 10 per cent. increase (cost) 290 505 decrease (yield) 355 615 Allowances and basic rate limit Change all main allowances and basic rate limit by 1 per cent.5 235 330 Change all main allowances and basic rate limit by 10 per cent.5 increase (cost) 2,275 3,225 decrease (yield) 2,450 3,500 Corporation Tax6 Change full rate by 1 percentage point 380 480 Change small companies rate by 1 percentage point7 40 60 1 The estimated revenue effects of changes in the basic rate of income tax in the main allowances of 10 per cent, are rounded to the nearest £25 million; other effects over £50 million are rounded to the nearest £5 million; effects of less than £50 million are rerounded to the nearest £1 million. The extent of rounding reflects the desire to avoid undue compounding of its effects when numbers are pro-rated, rather than the accuracy of the estimates. The figures for income tax changes include consequential effects on the yield of capital gains tax. Changes are assumed to take effect from April 1991. 2 Including the effect of the change on receipts of advance corporation tax and on consequent liability to mainstream corporation tax. 3 Allowances for those aged 65–74 and those aged 75 and over. 4 Figures include revenue effects of changing additional personal allowance and widow's bereavement allowance by £100. 5 Percentage changes are calculated with reference to 1990–91 levels. 6 Assessment to corporation tax normally related to the preceding year. These estimates are, therefore, the changes to revenue that would occur if the changed rates were applied to incomes from 1 April 1990. 7 These figures ignore effects arising from the imputation system.