Income Tax (Hansard, 25 November 1997)

HC Deb 25 November 1997 vol 301 cc468-9W 468W

§ Mr. Gibb
To ask the Chancellor of the Exchequer if he will estimate how may people would have a marginal rate of income tax of 10p in the pound, assuming bands for this rate were the first(a) £500, (b) £1,000, (c) £1,500, (d) £2,000, (e) £2,500, (f) £3,000, (g) £4,000, (h) £5,000 and (i) £6,000 of taxable income. [16837]

§ Dawn Primarolo
Using the hon. Member's assumptions, the estimates for 1997–98 are given in the table.

New 10p starting rate on first¹£ Number of taxpayers who would face a marginal rate of 10 pence (millions)

500 0.8

1,000 1.5

1,500 2.2

2,000 2.8

2,500 3.4

3,000 4.1

4,000 5.6

5,000 7.1

6,000 8.5

¹ Assuming that the new 10 pence rate band would apply to all taxable income, so that the rates for savings income would be 10 per cent., 20 per cent. and 40 per cent.

469W

New 10p starting rate on first¹£	Number of taxpayers who would face a marginal rate of 10 pence (millions)
500	0.8
1,000	1.5
1,500	2.2
2,000	2.8
2,500	3.4
3,000	4.1
4,000	5.6
5,000	7.1
6,000	8.5
¹ Assuming that the new 10 pence rate band would apply to all taxable income, so that the rates for savings income would be 10 per cent., 20 per cent. and 40 per cent.