Income Tax (Hansard, 14 May 1996)

§ Mr. Hunter
To ask the Chancellor of the Exchequer (1) what would be the yield of a 50 per cent. rate of tax starting at £50,000 and a 60 per cent. rate starting at £100,000; and how many taxpayers would be involved; [28314]
(2) what would be the yield of a 50 per cent. rate of tax starting at £50,000; and how many taxpayers would be involved; [28312]
(3) what would be the yield of 50 per cent. rate of tax starting at £100,000; and how many taxpayers would be involved. [28313]

§ Mr. Jack
Estimated full-year yields, 1996–97 income levels, are given in the table. The estimates of income tax yields do not take account of any behavioural effects which might result from the introduction of the increases in tax rates.

Lower limit of taxable income for the 50 per cent. rate Full-year revenue Number of taxpayers yield¹ at 1996–97 income levels Number of taxpayers affected

£ £ billion Thousands

50,000 2.3 450

100,000 1.1 110

50,000 (and with 60 per cent. rate above 100,000) 3.4 450

¹ including the consequential effects on the yield of capital gains tax after allowing for likely changes in the volume of disposals.

389W

§ Mr. Timms
To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Edinburgh, South (Mr. Griffiths) of 31 October 1995,Official Report, columns 151–52, on gross income and income tax liability by income band for 1996–97. [28581]

§ Mr. Jack
Available estimates are given in the table. It is not possible to provide reliable estimates for the specified bands of income above £100,000, nor is it possible to incorporate the detailed effect of mortgage interest relief which, in total, reduces income tax liability by £1.2 billion for taxpayers included in the table.

1996–97 Gross income¹ £ millions Income tax liability² £ millions Number of taxpayers (thousands)

£20,000 to £30,000 97,500 17,200 4,100

£30,000 to £40,000 42,200 8,750 1,200

£40,000 to £50,000 20,100 4,920 450

£50,000 to £60,000 12,100 3,250 220

£60,000 to £70,000 7,220 2,070 110

£70,000 to £80,000 5,630 1,680 80

£80,000 to £90,000 4,020 1,240 50

£90,000 to £100,000 2,630 830 30

£100,000+ 25,600 8,910 130

¹ Gross income is defined as total income for income tax purposes. It excludes income from certain social security benefits and some investment income such as National Savings Certificates.

² Not taking account of mortgage interest relief.

§ Mr. Timms
To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Edinburgh, South (Mr. Griffiths) of 6 November 1995,Official Report, column 537, to 1996–97 on the average tax allowances and reliefs for those with gross earnings up to £120,000, differentiating between reliefs and allowances claimed (i) at the marginal rate and (ii) at other rates. [28580]

§ Mr. Jack
Available estimates for taxpayers in 199697 are in the table. It is not possible to provide reliable estimates for the specified bands above £100,000.

Gross income range £ per year Average amount of tax reliefs and allowances claimed at marginal rates set against income £ Average amount of tax reliefs and allowances claimed at other rates, set against income £

0–10,000 4,100 650

10,000–20,000 4,400 1,400

20,000–30,000 4,800 2,300

30,000–40,000 5,300 2,700

40,000–50,000 6,100 2,800

50,000–60,000 6,700 2,850

60,000–70,000 7,200 2,950

70,000–80,000 7,900 2,900

80,000–90,000 8,300 2,950

90,000–100,000 9,000 3,000

Over 100,000 13,900 3,100

Average 4,500 1,400

§ Mr. Timms
To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Darlington (Mr. Milburn) of 4 May 1995,Official Report, columns 262–63, to provide estimates for 1996–97 for the number of taxpayers with gross and taxable income in income bands up to £150,000, supplying data at intervals of not more than £10,000. [28582]
390W

§ Mr. Jack
Available estimates are given in the table. It is not possible to provide reliable estimates for the specified bands of income above £100,000.

Number of taxpayers by range of

1996–97 Gross income¹ (thousands) Taxable income² (thousand)

Under £5,000 1,400 8,100

£5,000 to £10,000 7,800 6,500

£10,000 to £15,000 6,000 4,500

£15,000 to £20,000 4,200 2,900

£20,000 to £25,000 2,700 1,500

£25,000 to £30,000 1,400 770

£30,000 to £40,000 1,200 750

£40,000 to £50,000 450 300

£50,000 to £60,000 220 150

£60,000 to £70,000 110 80

£70,000 to £80,000 80 50

£80,000 to £90,000 50 30

£90,000 to £100,000 30 20

Over £100,000 130 110

Total 25,800 25,800

¹ Gross income is defined as total income for income tax purposes. It excludes income from certain social security benefits and some investment income such as national savings certificates.

² Taxable income is defined as gross income for income tax purposes less those allowance and reliefs which are available at the taxpayer's marginal rate.

Lower limit of taxable income for the 50 per cent. rate	Full-year revenue Number of taxpayers yield¹ at 1996–97 income levels	Number of taxpayers affected
£	£ billion	Thousands
50,000	2.3	450
100,000	1.1	110
50,000 (and with 60 per cent. rate above 100,000)	3.4	450
¹ including the consequential effects on the yield of capital gains tax after allowing for likely changes in the volume of disposals.

1996–97	Gross income¹ £ millions	Income tax liability² £ millions	Number of taxpayers (thousands)
£20,000 to £30,000	97,500	17,200	4,100
£30,000 to £40,000	42,200	8,750	1,200
£40,000 to £50,000	20,100	4,920	450
£50,000 to £60,000	12,100	3,250	220
£60,000 to £70,000	7,220	2,070	110
£70,000 to £80,000	5,630	1,680	80
£80,000 to £90,000	4,020	1,240	50
£90,000 to £100,000	2,630	830	30
£100,000+	25,600	8,910	130
¹ Gross income is defined as total income for income tax purposes. It excludes income from certain social security benefits and some investment income such as National Savings Certificates.
² Not taking account of mortgage interest relief.

Gross income range £ per year	Average amount of tax reliefs and allowances claimed at marginal rates set against income £	Average amount of tax reliefs and allowances claimed at other rates, set against income £
0–10,000	4,100	650
10,000–20,000	4,400	1,400
20,000–30,000	4,800	2,300
30,000–40,000	5,300	2,700
40,000–50,000	6,100	2,800
50,000–60,000	6,700	2,850
60,000–70,000	7,200	2,950
70,000–80,000	7,900	2,900
80,000–90,000	8,300	2,950
90,000–100,000	9,000	3,000
Over 100,000	13,900	3,100
Average	4,500	1,400

	Number of taxpayers by range of
1996–97	Gross income¹ (thousands)	Taxable income² (thousand)
Under £5,000	1,400	8,100
£5,000 to £10,000	7,800	6,500
£10,000 to £15,000	6,000	4,500
£15,000 to £20,000	4,200	2,900
£20,000 to £25,000	2,700	1,500
£25,000 to £30,000	1,400	770
£30,000 to £40,000	1,200	750
£40,000 to £50,000	450	300
£50,000 to £60,000	220	150
£60,000 to £70,000	110	80
£70,000 to £80,000	80	50
£80,000 to £90,000	50	30
£90,000 to £100,000	30	20
Over £100,000	130	110
Total	25,800	25,800
¹ Gross income is defined as total income for income tax purposes. It excludes income from certain social security benefits and some investment income such as national savings certificates.
² Taxable income is defined as gross income for income tax purposes less those allowance and reliefs which are available at the taxpayer's marginal rate.