HC Deb 30 March 1993 vol 222 cc140-1W
Mr. Dewar

To ask the Chancellor of the Exchequer if he will estimate the tax liabilities of taxpayers in 1993–94(a) including and (b) excluding the effects of changes in national insurance contributions compared with what their liability would be under the indexed 1987–88 income tax regime, giving figures for the top and bottom (i) percentile, (ii) 5 per cent., (iii) decile, (iv) quintile and (v) 50 per cent. of taxpayers.

Mr. Dorrell

Latest estimates are given in the table.

Information for the bottom 1 per cent. of taxpayers is not available. The 1987–88 income tax regime has been indexed to 1993–94 levels by reference to the statutory formula and allowing for independent taxation. For the purpose of the calculations the indexed regime of 1987–88 has been applied directly to the income base of 1993–94. In practice, retention of the 1987–88 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

Mr. Dewar

To ask the Chancellor of the Exchequer if he will update his answer of 25 February,Official Report, column 691, showing changes in tax and national insurance liability compared with an indexed 1987–88 tax regime, giving an estimate for 1993–94.

Mr. Donnell

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 1993–94 levels by reference to the statutory formula and allowing for independent taxation. For the purpose of the calculations the indexed regime of 1987–88 has been applied directly to the income base of 1993–94. In practice, retention of the 1987–88 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

Average change in 1993–94 compared with 1987–88 indexed regime
Range of individual's income in 1993–94 £ Income tax £ Income tax and national insurance £
Under 5,000 60 70
5,000–10,000 170 240
10,000–15,000 260 400
15,000–20,000 340 470
20,000–25,000 430 550
25,000–30,000 500 610
30,000–40,000 430 530
40,000–50,000 920 1,010
50,000–70,000 2,400 2,480
70,000–80,000 5,130 5,200
Over 80,000 19,200 19,200
Average 400 480