Income Tax (Hansard, 14 April 1994)

§ Mr. Jim Cunningham
To ask the Chancellor of the Exchequer if he will estimate the number of people earning less than £64,000 a year who are now paying more tax than they did in 1979.

§ 17. Mr. Grocott
To ask the Chancellor of the Exchequer if he will estimate the number of people earning less than £64,000 a year who are now paying more tax than they did in 1979.

§ 19. Mr. Denham
To ask the Chancellor of the Exchequer if he will estimate the number of people earning less than £64,000 a year who are now paying more tax than they did in 1979.

§ Mr. Dorrell
In 1994–95 no-one will pay more income tax than they would under a 1978–79 indexed regime.

§ Sir David Knox
To ask the Chancellor of the Exchequer if he will publish figures showing the thresholds for higher-rate income tax, at current prices, at constant prices and as percentages of average male earnings in each year from 1979–80 to 1993–94 together with estimates of 1994–95, for single people, single-wage married couples and two-wage married couples.

§ Mr. Dorrell
The information is in the table.
275W

Higher rate tax threshold

At current prices At constant prices¹ As a percentage of average male earnings²

Single person Married couple, 1 earner Married couple, 2 earners³ Person in receipt of full married couple's allowance⁴ Single person Married couple, 1 earner Married couple, 2 earners³ Person in receipt of full married couple's allowance⁴ Single person Married couple, 1 earner Married couple, 2 earners³ Person in receipt of full married couple's allowance⁴

(£) (£) (£) (£) (£) (£) (£) (£) (per cent.) (per cent.) (per cent.) (per cent.)

1979–80 11,165 11,815 12,980 — 27,630 29,238 32,121 — 196 208 228 —

1980–81 12,625 13,395 14,770 — 26,844 28,481 31,405 — 185 196 216 —

1981–82 12,625 13,395 14,770 — 24,083 25,552 28,175 — 166 177 195 —

1982–83 14,365 15,245 16,810 — 25,602 27,170 29,959 — 176 186 205 —

1983–84 16,385 17,395 19,180 — 27,912 29,632 32,673 — 184 196 216 —

1984–85 17,405 18,555 20,560 — 28,206 30,070 33,319 — 181 193 214 —

1985–86 18,405 19,655 21,860 — 28,175 30,088 33,464 — 178 190 212 —

1986–87 19,535 20,855 23,190 — 28,966 30,924 34,386 — 176 188 209 —

1987–88 20,325 21,695 24,120 — 28,993 30,948 34,407 — 167 179 199 —

1988–89 21,905 23,395 26,000 — 29,468 31,473 34,977 — 164 176 195 —

1989–90 23,485 25,075 27,860 — 29,306 31,290 34,766 — 161 172 191 —

1990–91 23,705 — — 25,425 26,984 — — 28,941 149 — — 160

1991–92 26,995 — — 28,715 29,316 — — 31,184 158 — — 168

1992–93 27,145 — — 28,865 28,589 — — 30,401 150 — — 160

1993–94 27,145 — — 28,865 28,025 — — 29,801 145 — — 154

1994–95 27,145 — — 27,145 27,145 — — 27,145 139 — — 139

¹ Provisional. At 1994–95 prices based on Budget assumptions of a 2 per cent. growth in the RPI in 1993–94 and 3.25 per cent. growth in 1994–95.

² Full-time males paid at adult rates working a full week (all occupations). Provisional for 1993–94 and 1994–95.

³ Assumes wife's earnings election not made.

⁴ Independent taxation for 1990–91 onwards.

§ Mr. Jim Cunningham
To ask the Chancellor of the Exchequer how many representations he has now received concerning the increase in the number of people who will have to pay income tax as a result of his decision to freeze income tax allowances.

§ Mr. Dorrell
Treasury Ministers have received a number of representations about the freezing of allowances.

Higher rate tax threshold
	At current prices	At constant prices¹	As a percentage of average male earnings²
	Single person	Married couple, 1 earner	Married couple, 2 earners³	Person in receipt of full married couple's allowance⁴	Single person	Married couple, 1 earner	Married couple, 2 earners³	Person in receipt of full married couple's allowance⁴	Single person	Married couple, 1 earner	Married couple, 2 earners³	Person in receipt of full married couple's allowance⁴
	(£)	(£)	(£)	(£)	(£)	(£)	(£)	(£)	(per cent.)	(per cent.)	(per cent.)	(per cent.)
1979–80	11,165	11,815	12,980	—	27,630	29,238	32,121	—	196	208	228	—
1980–81	12,625	13,395	14,770	—	26,844	28,481	31,405	—	185	196	216	—
1981–82	12,625	13,395	14,770	—	24,083	25,552	28,175	—	166	177	195	—
1982–83	14,365	15,245	16,810	—	25,602	27,170	29,959	—	176	186	205	—
1983–84	16,385	17,395	19,180	—	27,912	29,632	32,673	—	184	196	216	—
1984–85	17,405	18,555	20,560	—	28,206	30,070	33,319	—	181	193	214	—
1985–86	18,405	19,655	21,860	—	28,175	30,088	33,464	—	178	190	212	—
1986–87	19,535	20,855	23,190	—	28,966	30,924	34,386	—	176	188	209	—
1987–88	20,325	21,695	24,120	—	28,993	30,948	34,407	—	167	179	199	—
1988–89	21,905	23,395	26,000	—	29,468	31,473	34,977	—	164	176	195	—
1989–90	23,485	25,075	27,860	—	29,306	31,290	34,766	—	161	172	191	—
1990–91	23,705	—	—	25,425	26,984	—	—	28,941	149	—	—	160
1991–92	26,995	—	—	28,715	29,316	—	—	31,184	158	—	—	168
1992–93	27,145	—	—	28,865	28,589	—	—	30,401	150	—	—	160
1993–94	27,145	—	—	28,865	28,025	—	—	29,801	145	—	—	154
1994–95	27,145	—	—	27,145	27,145	—	—	27,145	139	—	—	139
¹ Provisional. At 1994–95 prices based on Budget assumptions of a 2 per cent. growth in the RPI in 1993–94 and 3.25 per cent. growth in 1994–95.
² Full-time males paid at adult rates working a full week (all occupations). Provisional for 1993–94 and 1994–95.
³ Assumes wife's earnings election not made.
⁴ Independent taxation for 1990–91 onwards.