§ Mr. BattleTo ask the Chancellor of the Exchequer what would be the revenue cost in 1992–93 of a reduced rate of income tax of(a) 20 per cent., (b) 23 per cent. and (c) 24 per cent., on the first (i) £1,000 and (ii) £2,000 of taxable income, in the United Kingdom giving the numbers with taxable incomes less than £1,000 and £2,000.
§ Mr. Maude[holding answer 25 February 1992]: Estimates at 1992–93 levels of income are as follows. They assume that the basic rate limit (higher rate threshold) would not be affected by the introduction of the reduced rate band.
Full year costs (£ million) Reduced rate Taxable income subject to reduced rate (£) 20 per cent. 23 per cent. 24 per cent. 1,000 1,190 480 240 2,000 2,280 910 460 Approximately 2 million tax-paying individuals have taxable income less than £1,000 and 4 million tax-paying individuals have taxable income less than £2,000 in 1992–93.