§ Mr. DewarTo ask the Chancellor of the Exchequer if he will update his answer of 25 February,Official Report, column 690, on the number of taxpayers, giving estimates for 1993–94.
§ Mr. DorrellLatest estimates for 1992–93 and 1993–94 are given in the table. The figures for 1992–93 have been revised in line with more recent information. Taxpayers
474W
Thousands Male Female All tax payers Single Married Single Married aged under 65 aged 65 and over aged under 65 aged 65 and over aged under 65 aged 65 and over aged under 65 aged 65 and over 1992–93 taxpayers Lower rate taxpayers 660 200 300 310 730 370 1,100 70 3,900 Basic rate taxpayers 4,200 260 6,800 650 2,700 500 3,800 260 19,200 Higher rate taxpayers 240 20 1,100 60 90 30 100 20 1,600 All taxpayers 5,100 480 8,200 1,000 3,600 910 4,900 550 24,700 1993–94 taxpayers Lower rate taxpayers 830 240 440 380 870 460 1,300 320 4,900 Basic rate taxpayers 4,000 230 6,500 580 2,600 440 3,400 230 18,000 Higher rate taxpayers 250 20 1,100 60 90 30 90 20 1,600 All taxpayers 5,100 490 8,100 1,000 3.5 920 4,800 560 24,500 The district health authorities' figures for 1991–92 are nor comparable with those for earlier years as they show the authorities primarily as purchasers rather that providers of health care. The figures for DHAs will vary reflecting a transitional position as the North East Thames regional health authority moves towards allocation funds to DHAs on a weighted capitation basis. Figures for total spending per capita include other resources, such as regional budgets and local income, in addition to allocations for resident population.
are classified as lower rate, basic rate or higher rate by comparing their taxable income with the lower rate and basic rate limits. Taxable income is defined as gross income less those allowances and reliefs which are available at taxpayers' marginal rates. In the earlier answer mortgage interest relief at source was deducted from taxable income in classifying taxpayers as basic or lower rate. However, as MIRAS is given at a single rate, and does not affect the taxpayer's marginal rate, it is more helpful for this purpose to disregard it. The effect of the definition now adopted is to reduce slightly the estimated number of lower rate taxpayers.
475W
§ Mr. DewarTo ask the Chancellor of the Exchequer if he will update the information given in tables 5.6 and 5.8 of the autumn statement 1992 on the basis of changes announced in the Budget.
§ Mr. DorrellThe table updates the information contained in table 5.6 of the Autumn Statement and shows the cost/yield in 1993–94 of illustrative tax changes implemented at the start of the year (receipts basis) and the corresponding cost/yield once the full effect of the changes come through (the full year basis) after taking into account the tax changes proposed in the Budget. Detailed information for the effect of the complete range of ready reckoner changes in 1994–95 is not yet available but will be published in "Inland Revenue Statistics" during the summer.
The estimates of the direct effects of illustrative changes in indirect taxes given in table 5.8 are broadly unchanged.
476W
Table 6 Direct effects of illustrative changes in direct taxes1 Income tax2 £ million cost/yeild Receipts 1993–94 Full year Rates Change lower rate by lp 320 380 Change basic rate by lp 1,300 1,500 Change higher rate by lp 190 330 Allowances Change personal allowance by £100 450 550 Change age-related personal allowances by £1003 40 55 Change married couple's allowance by £1004 180 230 Change age-related married couple's allowances by £1003 14 18 Change aged income limit by £500 6 10 Change all main allowances by 1 per cent.5 210 260 Change all main allowances by 10 per cent.:5 increase (cost) 2,050 2,575 decrease (yield) 2,150 2,675 Lower rate band Increase lower rate band by 10 per cent.5 190 240 Basic rate limit Change basic rate limit by 1 per cent.5 40 60 Change basic rate limit by 10 per cent.:5 increase (cost) 360 530 decrease (yield) 470 670 Allowances, lower rate band and basic rate limit Change all main allowances, lower rate band and basic rate limit by 1 per cent.5 270 340 Change all main allowances, lower rate band and basic rate limit by 10 per cent.:5 increase (cost) 2,575 3,300 decrease (yield) 2,850 3,650 Corporation tax6 Change full rate by 1 percentage point Change small companies' rate by 1 330 460 percentage point7 65 100 Capital gains tax8
Income tax2 £ million costjyeild Receipts 1993–94 Full year Change annual exempt amount by £500 for individuals and £250 for trusts 0 11 Inheritance tax8 Change rate by 1 percentage point 11 34 Increase threshold by £5,000 12 36 1 The estimated revenue effects of changes on receipts are rounded. The extent of rounding reflects the desire to avoid undue compounding of its effects when numbers are pro-rated, rather then the accuracy of the estiamtes. 2 The figures for income tax changes include consequential effects on the yield of capital gains tax. Changes are assumed to take effect from April 1993. 3 Allowances for those aged 65 to 74 and 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 1993–94 levels. 6 Assessment to corporation tax normally relates to the preceding year. These estimates are the changes to revenue that would occur if the changed rates were applied to profits from 1 April 1992. 7 These figures ignore effects arising from the imputition system. 8 These changes are assumed to take effect from April 1993.
§ Mr. DewarTo ask the Chancellor of the Exchequer if he will update his answer of 25 February,Official Report, column 688, on the number of taxpayers who pay tax at the rate of 20 per cent. only, giving estimates for 1993–94.
§ Mr. DorrellLatest estimates for 1993–94 indicate that about 4.9 million taxpayers will pay tax only at the lowest rate of 20 per cent. Their average gross income will be about £5,300 and average taxable income (defined as gross income less those allowances and reliefs which are available at the taxpayer"s marginal rate) will be £1,200.
§ Mr. DewarTo ask the Chancellor of the Exchequer if he will estimate for 1993–94 the number of people with(a) taxable income and (b) other income who have no tax liability, giving figures separately for (i) families with children, (ii) childless couples, (iii) single people and (iv) pensioners and non-pensioners.
Mr. DorellThe estimated numbers of taxpayers and non-taxpayers for 1993–94 are shown in the table. The estimates in the first table are based on a projection of the 1990–91 Survey of Personal Incomes and estimates of the total population. Information on types of family is derived from a number of sources including the 1991 Family Expenditure Survey and the estimates are approximate.
(millions) Taxpayers Non-taxpayers People aged 65 or over 3.0 6.2 People aged over 16 but less than 65 21.5 15.4
477W
(millions) Families with children1 Childless couples Single people without children Two taxpayers 2.0 3.1 — One taxpayer 2.9 1.9 9.6 No taxpayers 2.2 2.5 8.8 1 Includes 1.4 million lone parents.
§ Mr. DewarTo ask the Chancellor of the Exchequer if he will publish figures estimating the number of taxpayers in 1993–94 with(a) gross and (b) taxable incomes in the following income ranges: (i) under £5,000, (ii) £5,000 to £10,000, (iii) £10,000 to £15,000, (iv) £15,000 to £20,000 (v) £20,000 to £25,000 (vi) £25,000 to £30,000, (vii) £30,000 to £40,000, (viii) £40,000 to £50,000, (ix) £50,000 to to £70,000, (x) £70,000 to £80,000 and (xi) over £80,000.
§ Mr. DorrellLatest estimates are given in the table:
Thousands Number of taxpayers by range of 1Gross income 2Taxable income Under £5,000 2,200 9,100 £5,000 to £10,000 7,600 6,600 £10,000 to £15,000 6,100 4,000 £15,000 to £20,000 3,700 2,300 £20,000 to £25,000 2,200 1,000 £25,000 to £30,000 1,100 490 £30,000 to £40,000 860 470 £40,000 to £50,000 320 200 £50,000 to £70,000 230 150 £70,000 to £80,000 50 30 over £80,000 140 110 Total taxpayers 24,500 24,500 1 Gross income is defined as total income for income tax purposes. It excludes income from certain social security benefits and some investment income such as National Savings Certificates. 2Taxable income is defined as gross for income tax purposes less those allowances and reliefs which are available at the taxpayer's marginal rate.