§ Mr. MeacherTo ask the Chancellor of the Exchequer what definition of low incomes he used to determine that 4 million people on low incomes will pay income tax at only the 20p rate; and how many of those 4 million people will lose benefit as a result of the new 20 per cent. lower tax rate.
§ Mr. MaudeThe new 20 per cent. tax rate applies to the first £2,000 of taxable income in 1992–93. Nearly 4 million taxpayers will pay tax only at this new rate as their taxable income is £2,000 or less.
Of these, about half a million will be entitled to a smaller amount of income-related benefit as a result of the introduction of the lower rate band, when their benefit is next assessed.