§ Mr. Alan HowarthTo ask the Chancellor of the Exchequer if he will list the levels of income tax in 37W (a) the 1996–97 and (b) the 1978–79 indexed regimes broken down into the top 1 per cent., 5 per cent., 10 per cent. and bottom 50 per cent. and 10 per cent. of taxpayers, showing the total changes in the level of tax and the average gain or loss to each group. [35511]
§ Mr. Jack[holding answer 4 July 1996]: Information on the reduction in income tax liability for 1996–97 compared with the 1978–79 indexed regime is given in the table. This comparison is hypothetical since if an indexed version of the 1978–79 tax regime had prevailed over the past 18 years the income base would not have grown as it has.
Quantile group of taxpyers under the 1978–79 indexed Amount of income tax Reduction in income tax Average reduction Per cent. 1996–97 £ million 1978–79 indexed regime £ million £ Top 1 12,500 23,100 10,600 38,900 Top 5 25,400 40,700 15,300 11,200 Top 10 33,900 52,400 18,500 6,800 Bottom 50 8,700 14,000 5,300 400 Bottom 10 90 430 340 130