Taxation (Hansard, 10 December 1993)

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer what is the average individual cumulative gain(a) in cash prices and (b) in 1993–94 prices to those earning (i) £5,000, (ii) £10,000, (ii) £15,000, (iv) £20,000, (v) £25,000, (vi) £30,000, (vii) £40,000, (viii) £50,000, (ix) £60,000 and (x) £100,000, as a result of each change in (1) income tax and (2) income tax and national insurrance, since 1979.

§ Mr. Dorrell
Latest estimates of the reduction in liability resulting from changes in national insurance and income tax rates, allowances and thresholds are in the table. The 1978–79 income tax regime has been indexed to 1993–94 levels by reference to the statutory formula and allowing for independent taxation.

Comparison between 1993–94 and 1978–79 indexed regimes

Average reduction (£) in:

Range of individuals income in 1993–94(£) Income tax Income tax and national insurance contributions

Under 5,000 140 170

5,000 - 10,000 380 360

10,000 - 15,000 740 630

15,000 - 20,000 1,080 820

20,000 - 25,000 1,460 960

25,000 - 30,000 1,860 1,290

30,000 - 40,000 2,240 1,670

40,000 - 50,000 3,380 2,810

50,000 - 60,000 5,760 5,210

60,000 - 70,000 8,700 8,100

70,000 - 80,000 13,000 12,400

Over 80,000 47,700 47,200

Average 1,200 1,010

I regret that a reliable analysis incomes over £100,000 is not available.
For the purposes of the calculations, of 1978–79 has been applied directly to the income base of 396W 1993–94. In practice retention of the 1978–79 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer if he will publish a table showing the reduction in income tax in 1993–94 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
Latest estimates on the annual reduction in income tax liability for 1993–94 compared with the 1978–79 indexed regime are given in the table. The 1978–79 regime has been indexed by reference to the statutory formula and allowing for independent taxation. For the purpose of these calculations the indexed regime of 1978–79 is applied directly to the later income base of 1993–94. In practice, retention of the regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

Quantile group of taxpayers under the 1978–79 indexed regime Nos. of tax-payers Reduction in tax Average gain

(Per cent) (Thousands) (£ million) (£)

Top 1 300 9,600 35,800

Top 5 1,300 13,400 10,000

Top 10 2,700 16,000 6,000

Bottom 50 13,300 4,500 340

All taxpayers 26,700 31,800 1,200

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer what is the regional distribution of(a) the personal tax burden and (b) the overall tax burden.

§ Mr. Dorrell
The table shows the amount of income tax payable by region for 1991–92, the latest year for which regional information is available. Regional information for taxes overall is not available.

Region Amount of income tax liability of residents (£ million)

North 2,710

Youkshire and Humberside 4,840

East Midlands 6,360

West Midland 4,300

East Anglia 5,210

South East 28,800

South West 5,270

Wales 2,500

Scotland 5,170

Northern Ireland 1,050

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer how many people and what percentage of all taxpayers in(a) Great Britain and (b) Northern Ireland paid the top rate of income tax in each year since 1979.

§ Mr. Dorrell
The table provides estimates of the number of taxpayers in the United Kingdom liable to income tax at a higher rate—that is any rate above the basic rate. Prior to the introduction of independent taxation in 1990–91, married couples are counted as one unit. It is not possible for the Northern Ireland component to be reliably 397W distinguished for each of these years separately. However, for the years pre-independent taxation, 1980–81 to 1989–90, the number of higher rate taxpayers in Northern Ireland averaged about 20,000, about 4 per cent. of all taxpayers in Northern Ireland. It is estimated that there were 22,000 higher rate taxpaying individuals in Northern Ireland in 1991–92, which is around 4¼ per cent. of all taxpaying individuals in the province.

Taxpayers liable at higher rate, 1978–79 to 1993–94¹

Thousands As percentage of all taxpayers

1978–79 763 3.6

1979–80 674 3.1

1980–81 796 3.8

1981–82 1,090 5.2

1982–83 983 4.7

1983–84 860 4.2

1984–85 930 4.6

1985–86 950 4.7

1986–87 1,120 5.5

1987–88 1,190 5.7

1988–89 1,350 6.4

1989–90 1,500 7.0

1990–91 1,700 6.5

1991–92 1,620 6.2

²1992–93 1,800 7.1

²1993–94 1,900 7.5

¹ Single people and married couples for years up to and including 1989–90, individuals from 1990–91.

² Provisional estimates projected from the 1991–92 Survey of Personal Incomes.

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer if he will list for each region of the United Kingdom(a) the number of higher rate taxpayers, (b) the number of basic rate taxpayers and (c) the number that pay no national insurance or income tax.

§ Mr. Dorrell
The information shown in the table is the latest available on a regional basis and is for 1991–92.

Thousands

Region Taxpayers liable at higher rate Taxpayers liable only at basic rate Non-taxpayers aged over 16

North 50 1,220 1,190

Yorkshire and Humberside 93 2,050 1,810

North West 122 2,620 2,290

East Midlands 83 1,760 1,360

West Midlands 95 2,160 1,900

East Anglia 53 975 640

South East 832 7,780 5,480

South West 114 2,160 1,530

Wales 36 1,210 1,050

Scotland 108 2,220 1,760

Northern Ireland 22 490 670

Comparison between 1993–94 and 1978–79 indexed regimes
	Average reduction (£) in:
Range of individuals income in 1993–94(£)	Income tax	Income tax and national insurance contributions
Under 5,000	140	170
5,000 - 10,000	380	360
10,000 - 15,000	740	630
15,000 - 20,000	1,080	820
20,000 - 25,000	1,460	960
25,000 - 30,000	1,860	1,290
30,000 - 40,000	2,240	1,670
40,000 - 50,000	3,380	2,810
50,000 - 60,000	5,760	5,210
60,000 - 70,000	8,700	8,100
70,000 - 80,000	13,000	12,400
Over 80,000	47,700	47,200
Average	1,200	1,010

Quantile group of taxpayers under the 1978–79 indexed regime	Nos. of tax-payers	Reduction in tax	Average gain
(Per cent)	(Thousands)	(£ million)	(£)
Top 1	300	9,600	35,800
Top 5	1,300	13,400	10,000
Top 10	2,700	16,000	6,000
Bottom 50	13,300	4,500	340
All taxpayers	26,700	31,800	1,200

Region	Amount of income tax liability of residents (£ million)
North	2,710
Youkshire and Humberside	4,840
East Midlands	6,360
West Midland	4,300
East Anglia	5,210
South East	28,800
South West	5,270
Wales	2,500
Scotland	5,170
Northern Ireland	1,050

Taxpayers liable at higher rate, 1978–79 to 1993–94¹
	Thousands	As percentage of all taxpayers
1978–79	763	3.6
1979–80	674	3.1
1980–81	796	3.8
1981–82	1,090	5.2
1982–83	983	4.7
1983–84	860	4.2
1984–85	930	4.6
1985–86	950	4.7
1986–87	1,120	5.5
1987–88	1,190	5.7
1988–89	1,350	6.4
1989–90	1,500	7.0
1990–91	1,700	6.5
1991–92	1,620	6.2
²1992–93	1,800	7.1
²1993–94	1,900	7.5
¹ Single people and married couples for years up to and including 1989–90, individuals from 1990–91.
² Provisional estimates projected from the 1991–92 Survey of Personal Incomes.

Thousands
Region	Taxpayers liable at higher rate	Taxpayers liable only at basic rate	Non-taxpayers aged over 16
North	50	1,220	1,190
Yorkshire and Humberside	93	2,050	1,810
North West	122	2,620	2,290
East Midlands	83	1,760	1,360
West Midlands	95	2,160	1,900
East Anglia	53	975	640
South East	832	7,780	5,480
South West	114	2,160	1,530
Wales	36	1,210	1,050
Scotland	108	2,220	1,760
Northern Ireland	22	490	670