§ Mr. FormanTo ask the Chancellor of the Exchequer, pursuant to his answer of 26 February 1996,Official Report, column 372, what would be the estimated full-year costs at 1996–97 income levels of introducing a single positive rate of income tax at 20 per cent., assuming transferable personal allowances of £5,000 per person and the abolition of all other tax expenditures, exemptions and reliefs now allowable against income tax. [20334]
§ Mr. JackThe estimated full-year cost of introducing a single 20 per cent. rate of income tax at 1996–97 income levels would be about £12 billion. This assumes a personal allowance of £5,000 transferable between spouses and the abolition of all other income tax allowances, and mortgage interest relief, tax relief on employee's contributions to occupational and personal pension schemes, reliefs for TESSAs, PEPs and profit-related pay, national savings certificates, employee share schemes and charitable giving.
This estimate does not take into account the substantial behavioural effects which might result from the introduction of such a change nor do they allow for any subsequent changes to the tax system, such as changes to tax relief on employer's contributions to pension schemes or relief for investment income in pension funds.
§ Mr. FormanTo ask the Chancellor of the Exchequer what was the total cost of all tax expenditures, reliefs, exemptions and allowances allowable against income tax excluding personal allowances(a) in 1979, (b) 1983, (c) 1987, (d) 1992 and (e) in the latest year for which figures are available. [20343]
§ Mr. JackThe available historical information about the costs of income tax allowances and reliefs have been published in Inland Revenue Statistics. Table 1.6 of Inland Revenue Statistics 1995 contains figures for the latest years. Copies can be found in the Library.
§ Mr. FabricantTo ask the Chancellor of the Exchequer what estimate he has made of the total revenue that would be raised from personal income tax for the year 1996–97 if there were a flat rate of 20 per cent., no deductible allowances, but the first £10,000 of income was tax free. [20825]
53W
§ Mr. JackAvailable information was given in my answer to the hon. Member for Dover (Mr. Shaw) on 7 February 1996,Official Report, column 186.
§ Mr. Clifton-BrownTo ask the Chancellor of the Exchequer what percentage of income tax is paid by the top 5 per cent. of income tax payers; and what was the figure in 1979. [20731]
§ Mr. JackIt is estimated that in 1996–97 the top 5 per cent. of income tax payers will pay 34 per cent. of the total income tax liability compared with 24 per cent. in 1978–79.