Alternative Minimum Tax

HC Deb 14 June 1994 vol 244 cc352-3W

Mr. Dewar

To ask the Chancellor of the Exchequer if he will update the answer given to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 2 May 1991,Official Report, columns 296–97, estimating the effect on Treasury revenues in 1994–95 of introducing an alternative minimum tax.

Mr. Dorrell

The information is as follows:

Additional tax liability arising from introduction of alternative minimum tax on gross income, 1994–95
Gross income of individual taxpayer (£)	Rate of minimum tax
	20 per cent. £ million	25 per cent. £ million
Over 40,000	35	180
Over 45,000	30	100
Over 50,000	25	75

The estimates do not take account of any behavioural effects which might result from the introduction of the new arrangements.