§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer if he will publish a table showing the reduction in income tax in 1992–93 compared with the 1978–79 indexed regime broken down into the top 1 per cent., 5 per cent., 10 per cent. and bottom 50 per cent. of taxpayers showing the total reduction and the average gain.
§ Mr. Dorrell[holding answer 18 June 1992]: Latest estimates of the annual change in income tax liability resulting from the changes in tax rates, allowances, and thresholds are in the table. The 1978–79 income tax regime has been indexed to 1992–93 levels by reference to the statutory formula, and allowing for independent taxation.
For the purposes of these calculations, the indexed regime of 1978–79 has been applied directly to the income base of 1992–93. In practice, retention of the 1978–79 regime, indexed as appropriate, for the intervening years would have led to changes in the income base. 689W
Reductions in income tax per individual1 in 1992–93 compared with the 1978–79 indexed regime
Quantile group of individual taxpayers
Total reduction at 1992–93 prices
Average reduction at 1992–93 prices £
£ million £ Top 1 per cent. 8,700 33,300 Top 5 per cent. 13,100 10,000 Top 10 per cent. 15,200 6,000 Bottom 50 per cent. 4,800 400 All taxpayers 31,400 1,200 1 Individuals liable to income tax under the 1978–79 indexed regime.