§ Mr. Frank FieldTo ask the Chancellor of the Exchequer (1) if he will publish estimates for the revenue cost in 1996–97 and for a full year of reducing the 20 per cent. tax rate to(a) 5 per cent., (b) 7 per cent., (c) 9 per cent., (d) 10 per cent., (e) 12 per cent., (f) 15 per cent., (g) 16 per cent. and (h) 18 per cent. on taxable income of (i) £1,000, (ii) £2,000 (iii) £3,000 and (iv) £3,200 retaining any balance of £3,200 at the 20 per cent. rate. [23354]
(2) if he will provide estimates for the revenue cost in 1995–96 and for a full year of reducing the 20 per cent. tax rate to (a) 5 per cent., (b) 7 per cent., (c) 9 per cent., (d) 10 per cent., (e) 12 per cent., (f) 15 per cent., (g) 16 per cent. and (h) 18 per cent., on taxable income of (i) £1,000, (ii) £2,000 (iii) £3,000 and (iv) £3,200 retaining any balance of £3,200 at the 20 per cent. rate. [23974]
§ Sir George Young[holding answer 9 May 1995]: The table gives available estimates showing the variation in revenue costs over the specified ranges of tax rates and bands of taxable incomes. No change in the rate of advance corporation tax or the rate of tax on dividends has been assumed.
Full year revenue cost, at 1995–96 levels1 Band of taxable income (£) 5 per cent. (£ billion) lower rate 10 per cent. 18 per cent. 1,000 3.8 2.5 0.5 2,000 7.3 4.9 1.0 3,000 10.5 7.0 1.4 3,200 11.1 7.5 1.5 1 The figures include consequential effects on the yield of capital gains tax.