§ Mr. Nigel GriffithsTo ask the Chancellor of the Exchequer how many additional people will pay tax at the higher rate if the basic rate upper limit is not raised in line with indexation in 1996–97; and what will be the average loss per taxpayer. [38997]
§ Mr. JackAbout 200,000 taxpayers would be brought into higher rate tax. The average additional income tax liability compared with indexation for the 2.4 million taxpayers affected would be about £145.
§ Mr. GriffithsTo ask the Chancellor of the Exchequer what is the revenue cost or yield in 1995–96 and in a full year of the introduction of a minimum tax rate of(a) 15 per cent., (b) 20 per cent., (c) 25 per cent., (d) 30 per cent., (e) 35 per cent., (f) 40 per cent., (g) 45 per cent., (h) 50 per cent. and (i) 55 per cent. on gross incomes of over (i) £50,000, (ii) £70,000, (iii) £80,000, (iv) £90,000, (v) £100,000, (vi) £110,000, (vii) £120,000 (viii) £130,000, (ix) £140,000 and (x) £150,000. [39104]
§ Mr. JackThe table gives available estimates showing the variation in revenue yields over the specified ranges of tax rates and thresholds of gross incomes up to £100,000. Reliable estimates are not available for higher thresholds of gross income.
Full year revenue yield at 1995–96 levels. Rate of minimum tax £ million Gross income 15 per cent. 35 per cent. 55 per cent. Over £50,000 10 1,860 11,800 Over £70,000 5 710 7,230 Over £100,000 5 280 4,610 The estimates do not take account of any behavioural effects which might result from the introduction of the new arrangements.