Personal Taxation (Hansard, 27 October 1993)

§ Mr. Dewar
To ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Peckham (Ms Harman) on 27 May,Official Report, column 666, what is his estimate for the number of people taxed on (a) PAYE, (b) schedule D and (c) schedule E basis and of the tax yield for each category in 1993–94.

§ Mr. Dorrell
Available estimates for 1993–94 are as follows:674W

Source of income Number of individual taxpayers¹ (million) Tax yield² (£ billion)

PAYE and other Schedule E Schedule D 23.1 51.4

Schedule D³ 3.4 9.1

¹ A taxpayer with both a Schedule E and Schedule D source of income is included in both rows of the table.

² The tax yield represents the tax liability on each type of income where that income is regarded as the top slice of a person's income.

³ Excluding interest taxed at source.

§ Mr. Dewar
To ask the Chancellor of the Exchequer (1) what would be the effect on the number of higher rate taxpayers in the financial year 1994–95 of(a) indexation, (b) freezing the main personal allowances, (c) freezing personal allowances and the higher rate threshold, (d) raising personal allowances by 5 per cent. more than indexation and (e) raising personal allowances by 10 per cent. more than indexation, giving figures separately for each main allowance and a total for main allowances;
(2) what would be the effect on the number of taxpayers in the financial year 1994–95 of (a) indexation of the main personal allowances, (b) freezing the main personal allowances, (c) increasing allowances by 5 per cent. more than indexation and (d) increasing allowances by 10 per cent. more than indexation, giving figures separately for each main personal allowance and a total for all main allowances.

§ Mr. Dorrell
Latest estimates for 1994–95 are shown in the table.

Millions

Taxpayers

Number Of which liable at higher rate

(i) Indexation 25.0 2.3

(ii) Freezing the personal allowance 25.2 2.3

(iii) Freezing the married couple's allowance¹ 25.1 2.3

(iv) Freezing all main allowances 25.2 2.3

(v) Freezing all main allowances and the basic rate limit 25.2 2.4

(vi) Raising the personal allowance by 5 per cent. more than indexation 24.6 2.2

(vii) Raising the married couple's allowance by 5 per cent. more than indexation 25.0 2.3

(viii) Raising all allowances by 5 per cent. more than indexation 24.5 2.2

(ix) Raising the personal allowance by 10 per cent. more than indexation 24.2 2.2

(x) Raising the married couple's allowance by 10 per cent. more than indexation 24.9 2.3

(xi) Raising all allowances by 10 per cent. more than indexation 24.1 2.2

¹ References to the married couple's allowance include the effect of changing the additional personal allowance and the widow's bereavement allowance.

Source of income	Number of individual taxpayers¹ (million)	Tax yield² (£ billion)
PAYE and other Schedule E Schedule D	23.1	51.4
Schedule D³	3.4	9.1
¹ A taxpayer with both a Schedule E and Schedule D source of income is included in both rows of the table.
² The tax yield represents the tax liability on each type of income where that income is regarded as the top slice of a person's income.
³ Excluding interest taxed at source.

Millions
		Taxpayers
		Number	Of which liable at higher rate
(i)	Indexation	25.0	2.3
(ii)	Freezing the personal allowance	25.2	2.3
(iii)	Freezing the married couple's allowance¹	25.1	2.3
(iv)	Freezing all main allowances	25.2	2.3
(v)	Freezing all main allowances and the basic rate limit	25.2	2.4
(vi)	Raising the personal allowance by 5 per cent. more than indexation	24.6	2.2
(vii)	Raising the married couple's allowance by 5 per cent. more than indexation	25.0	2.3
(viii)	Raising all allowances by 5 per cent. more than indexation	24.5	2.2
(ix)	Raising the personal allowance by 10 per cent. more than indexation	24.2	2.2
(x)	Raising the married couple's allowance by 10 per cent. more than indexation	24.9	2.3
(xi)	Raising all allowances by 10 per cent. more than indexation	24.1	2.2
¹ References to the married couple's allowance include the effect of changing the additional personal allowance and the widow's bereavement allowance.