§ Mr. Mike O'BrienTo ask the Chancellor of the Exchequer (1) if he will list the numbers brought into the higher rate tax for each year since 1989–90 when the Government did not increased tax thresholds in line with(a) inflation and (b) earnings; [8307]
(2) what is the percentage change in the number of higher rate taxpayers since 1989–90; and what have been the changes in respect of the numbers of people paying the higher rate since 1989–90. [8306]
§ Mr. JackEstimated taxpayer numbers under independent taxation for years from 1990–91 are given in the table. Under the 1989–90 income tax regime indexed to allow for changes in the retail prices index there would be 1.5 million higher rate taxpayers in 1996–97. Equivalent estimates for all intervening years could be provided only at disproportionate cost. Statutory indexation of tax thresholds is expressed in terms of price rather than earnings movements.
Estimated taxpayer numbers1 Millions Number of lower rate taxpayers Number of basic rate taxpayers Number of higher rate taxpayers 1990–91 — 24.4 1.70 1991–92 — 24.1 1,62 1992–93 4.24 19.4 1.72
488W
Standard rate of basic rate £ per annum Personal allowance Age under 65 Age allowance Age 65–74 Age allowance Age 75 or more Standard rate of basic retirement pension Under 80 80 or more 1979–80 1,165 1,540 1,540 1,094 1,107 1980–81 1,375 1,820 1,820 1,285 1,298 1981–82 1.375 1,820 1,820 1.458 1.471 1982–83 1,565 2.070 2,070 1,601 1,614
Estimated taxpayer numbers1 Millions Number of lower rate taxpayers Number of basic rate taxpayers Number of higher rate taxpayers 1993–94 5.17 18.1 1.74 1994–952 5.00 18.3 2.10 1995–962 5.40 18.1 2.20 1996–97 6.30 17.3 2.20 1Figures for 1989–90 are in terms of joint taxation, figures for later years include individuals under independent taxation and are therefore not directly comparable. It is estimated that there were about 20 million single people and married couples liable to tax at the basic rate only and 1.5 million liable at the higher rate. 2Provisional.