§ Mr. DenhamTo ask the Chancellor of the Exchequer what estimate he has made of the cost of the 20p tax hand: and if he will list the number in each successive £1.0001048W income band above the tax threshold, indicating the average annual tax reduction for a person in each £1,000 income band. [4002]
§ Mr. JackThe estimated full-year tax cost at 1996–97 income levels of the proposed £3,900 20p band tax is £3.5 billion. The numbers of taxpayers and the average annual tax reduction by income hand are given in the table:
Income band above the tax threshold £ Number of taxpayers millions 1 Average reduction £ 0–1,000 1.6 20 1,000–2,000 1.6 60 2,000–3,000 1.6 100 3,000–3,900 1.5 140 [...]3,900 19.5 156 Total 25.8 140 1 A 20p rate compared with a 24p rate for the same income hand.