§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the revenue which would be raised by introducing a new upper rate of income tax of(a) 45 per cent. and (b) 50 per cent. for marginal incomes above (1) £75,000 per annum, (2) £80,000 per annum, (3) £100,000 per annum and (4) £1,000,000 per annum; and if he will estimate, in each case, the number of individuals whose post-tax incomes would be affected. [22687]
§ Mr. Jack[holding answer 26 March 1996]: Estimated full-year yields at 1996–97 income levels are given in the table. The estimates do not take account of any behavioural effects which might result from the 6W introduction of such changes. It is not possible to provide a reliable estimate of the effect of introducing the higher tax rates for taxable incomes over £1,000,000.
Lower limit of taxable income Full year revenue yield at 1996–97 income levels Upper rate1 Number of taxpayers affected £ 45 per cent. £ billion 50 per cent. £ billion Thousands 75,000 0.8 1.5 190 80,000 0.7 1.4 170 100,000 0.6 1.1 110 1The figures include consequential effects on the yield of capital gains tax.