§ Mr. Frank FieldTo ask the Chancellor of the Exchequer if he will publish estimates of the revenue cost of (i) allowances set against income tax and (ii) reliefs set against income tax for(a) the top 1 per cent, of taxpayers, (b) the top 5 per cent., (c) the top 10 per cent., (d) the top 25 per cent., (e) the top 50 per cent., (f) the top 70 per cent, and (g) all taxpayers. [23348]
§ Sir George Young[holding answer 9 May 1995]: Estimated full-year revenue costs at 1995–96 income levels are in the table. Separate costings have been produced for allowances and reliefs. The combined cost of both allowances and reliefs would be greater than the 470W sum of the individual figures. Since 1979, income tax rates have been lowered and real incomes have increased by 40 per cent.
Cost of Allowances and Reliefs Group of taxpayers Allowances £ billion Reliefs £ billion Top 1 per cent. 0.4 0.7 Top 5 per cent. 2.1 1.9 Top 10 per cent. 4.1 2.9 Top 25 per cent. 8.3 4.6 Top 50 per cent. 15.0 6.5 Top 70 per cent. 20.3 7.3 All taxpayers 27.8 7.7
§ Mr. Frank FieldTo ask the Chancellor of the Exchequer if he will publish a table showing the increase in income tax in 1995–96 compared with the 1992–93 indexed regime broken down into the top 1 per cent., top 5 per cent., top 10 per cent., top 50 per cent, and bottom 50 per cent., showing the total increase and the average loss. [23351]
§ Sir George Young[holding answer 9 May 1995]: Provisional estimates are given in the table. These figures reflect a larger working population and the fact that more people are better off—real incomes have grown by 40 per cent, since 1979—both largely due to economic growth.
Total increase and average increase in 1995–96 compared with 1992–93 indexed regime. Group of taxpayers Total increase in income tax £million Average increase in income tax £ Top 1 per cent. 190 740 Top 5 per cent. 910 710 Top 10 per cent. 1,540 600 Top 50 per cent. 3,390 260 Bottom 50 per cent. 1,120 90
§ Mr. Frank FieldTo ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Hartlepool (Mr. Mandelson), of 1 July 1993,Official Report, columns 598–600, providing estimates for 1995–96 and 1996–97 of the revenue yield of introducing upper limits for tax allowances and reliefs, and the number of individuals affected. [23522]
Sir George Young [holding answer 9 May 1995]: Since the married couple's allowance and mortgage interest relief are now given at a rate of 15 per cent., the terms of the original question are no longer meaningful.
§ Mr. Frank FieldTo ask the Chancellor of the Exchequer if he will estimate, on the same basis as in his answer to the hon. Member for Hartlepool (Mr. Mandelson) of 30 November 1993,Official Report, columns 385–86, (a) the total income, earned and unearned, (b) the total national insurance contributions and (c) the total income tax paid by (i) the top 1 per cent., (ii) the top 5 per cent., (iii) the top 10 per cent., (iv) the bottom 50 per cent, and (v) all taxpayers in 1983–84, 1985–86, 1987–88, 1988–89 and 1995–96. [24370]
471W
§ Sir George Young[holding answer 16 May 1995]: Final estimates for 1992–93 and provisional estimates for 1993–94 to 1995–96 based on a projection of the 1992–93 survey of personal incomes are given in the table. The estimates of total income relate to income subject to tax and exclude non-taxable income such as certain social security benefits. These figures reflect a larger working population and the fact that more people are better off—real incomes have grown by 40 per cent, since 1979—both largely due to economic growth.
Quantile group of taxpayers Per cent. Total income £ million Income tax liability £ million Employees' and self-employed national insurance contributions £ million 1992–93 Top 1 29,300 9,500 300 Top 5 72,000 19,800 1,600 Top 10 108,100 26,500 3,100 Bottom 50 96,900 8,000 4,000 All taxpayers 373,700 60,700 16,300 1993–94 Top 1 30,000 9,800 300 Top 5 74,300 20,500 1,700 Top 10 111,700 27,600 3,400 Bottom 50 97,300 8,200 3,900 All taxpayers 382,800 63,200 17,200 1994–95 Top 1 31,800 10,700 400 Top 5 78,300 22,600 1,900 Top 10 117,500 30,400 3,900 Bottom 50 99,400 9,000 4,400 All taxpayers 398,500 69,000 19,900 1995–96 Top 1 33,700 11,400 400 Top 5 82,700 24,100 2,000 Top 10 124,400 32,700 4,100 Bottom 50 104,300 9,800 4,500 All taxpayers 420,900 74,600 20,800