HC Deb 25 February 1993 vol 219 cc682-4W
Mr. Dewar

To ask the Chancellor of the Exchequer if he will estimate the number and percentage of adults who pay income tax broken down by(a) sex, (b) marital status and (c) whether they are over or under pension age, giving for each group the numbers whose highest marginal tax rate is (i) 40 per cent., (ii) 25 per cent. and (iii) 20 per cent.

Mr. Dorrell

Latest estimates of taxpayer numbers in 1992–93 based on a projection of the 1990–91 survey of personal incomes are shown in the table. Available estimates are in terms of age below or above 65 rather than pension age.

1992–93 taxpayers
Male Female All taxpayers
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
'000 '000 '000 '000 '000 '000 '000 '000 '000
Lower rate taxpayers 720 200 640 300 800 380 1,100 280 4,400
Basic rate taxpayers 4,200 260 6,400 640 2,700 490 3,800 260 18,700
Higher rate taxpayers 240 20 1,100 60 90 30 100 20 1,700
All taxpayers 5,200 480 8,200 1,000 3,600 900 5,000 550 24,800

Mr. Dewar

To ask the Chancellor of the Exchequer if he will estimate the cost in 1993–94 and in a full year of increasing the lower rate band by(a) £100, (b) £500, and (c) £1,000; and how many additional taxpayers would face a top marginal rate of income tax of 20 per cent. as a result, giving figures separately for men and women.

Mr. Dorrell

Estimated costs compared with 2.6 per cent. indexation of the 1992–93 allowances and thresholds, are in the table.

Increase in the lower rate band Revenue cost in 1993–94 Revenue cost in a full year Additional numbers of taxpayers with a marginal rate of 20 per cent.
£ £million £million Males (000s) Females (000s)
100 80 100 110 90
500 390 490 440 470
1,000 760 960 950 860

Mr. Dewar

To ask the Chancellor of the Exchequer what are the tax liabilities of taxpayers in 1992–93 in the income ranges(a) including and (b) excluding the effects of changes in national insurance contributions (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 £70,000, (x) over £70,000 and (xi) over £100,000, compared with what their liability would be under the indexed 1987–88 income tax regime.

Mr. Dorrell

Latest estimates of the average reductions in income tax liability resulting from the changes in tax rates, allowances and thresholds are in the table. The 1987–88 income tax regime has been indexed to 1992–93 levels by reference to the statutory formula and allowing for independent taxation.

Average change in 1992–93 compared with 1987–88 indexed regime (£)
Range of individuals income in 1992–93 (£) Income tax Income tax and National Insurance
Under 5,000 80 90
5,000–10,000 190 250
10,000–15,000 260 400
15,000–20,000 340 490
20,000–25,000 430 570
25,000–30,000 510 630
30,000–40,000 370 480
40,000–50,000 730 840
50,000–70,000 2,150 2,240
70,000–80,000 4,840 4,920
Over 80,000 18,900 18,900
Average 400 480

I regret that a reliable analysis of taxpayers with incomes over £100,000 is not available.

For the purpose of the calculations the indexed regime of 1987–88 has been applied directly to the income base of 1992–93. In practice, retention of the 1987–88 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.