§ Mr. DewarTo ask the Chancellor of the Exchequer pursuant to the answers to the hon. Member for Taunton (Mr. Nicholson) on 17 February,Official Report, column 206, if he will update the estimates giving figures for 1994–95 and for a full year.
§ Mr. DorrellAssuming statutory indexation in 1994–95 the basic rate limit would be £24,200. Estimated costs on yields at 1994–95 income levels compared with the indexed base are given in the table.
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Band of taxable income over which 35 per cent. rate would be charged Revenue cost at 1994–95 income levels from introducing a 35 per cent. rate £ million £ In 1994–95 Full-year 24,200–26,000 140 190 24,200–30,000 380 510 24,200–35,000 600 800
Level of taxable income above which 50 per cent. rate would be charged Revenue yield at 1994–95 income levels from introducing a 50 per cent. Rate £ million £ In 1994–95 Full-year 50,000 1,450 1,950 60,000 1,210 1,620 70,000 1,030 1,380 The estimates do not allow for any behavioural effect that might result from such changes to the tax system and do not include capital gains tax.