Income Tax (Hansard, 25 March 1998)

§ Mr. Cousins
To ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Ribble Valley (Mr. Evans) of 9 March 1998,Official Report, columns 1–4, on income tax, if he will provide equivalent information for Scotland; and if he will list the number and percentage of taxpayers paying income tax at the lower rate in England, Wales and Scotland. [35598]

§ Dawn Primarolo
[holding answer 23 March 1998]: Table 1 shows estimates of the number and percentage of basic and higher rate taxpayers by unitary authority in Scotland in 1995–96, the latest year for which there is information. Table 2 shows estimates of the number and percentage of taxpayers paying income tax at the lower rate in England, Wales and Scotland in 1995–96.
205W

Table 2: Number and percentage of lower rate taxpayers for England, Wales and Scotland

Number of lower rate taxpayers (thousands) Percentage of all taxpayers

England 4,780 22.0

Wales 297 25.3

Scotland 493 22.0

§ Dr. Lynne Jones
To ask the Chancellor of the Exchequer what would be raised in a year by taxing(a) at the standard rate and (b) at the higher rate all households with (i) a total income in excess of £40,000 and (ii) one earner with an income in excess of £40,000. [35527]

§ Dawn Primarolo
Information is given for 1998–99 in the table.

£ million

Income Cost(-)/yield(+) in a full year

(i) Total income¹ of single person or couple exceeds £40,000 p.a.

—All taxable income² taxed at flat rate of 23 per cent, (basic rate) -7,700

—All taxable income² taxed at flat rate of 40 per cent, (higher rate) +20,000

(ii) Total income¹ of single person or at least one member of couple exceeds £40,000 p.a.

—All taxable income² taxed at flat rate of 23 per cent, (basic rate) -7,700

—All taxable income² taxed at flat rate of 40 per cent, (higher rate) +8,800

¹ Total income subject to tax, including earnings from employment, self-employed income, investment income and taxable social security benefits.

² Income subject to tax less tax allowances and reliefs which are available at the marginal rate.

This answer assumes that the intention is to apply a flat rate of tax at 23 or 40 per cent. to taxable income in the specified circumstances. The personal allowance and married couple's allowance have been given where appropriate.

Table 2: Number and percentage of lower rate taxpayers for England, Wales and Scotland
	Number of lower rate taxpayers (thousands)	Percentage of all taxpayers
England	4,780	22.0
Wales	297	25.3
Scotland	493	22.0

£ million
	Income	Cost(-)/yield(+) in a full year
(i)	Total income¹ of single person or couple exceeds £40,000 p.a.
	—All taxable income² taxed at flat rate of 23 per cent, (basic rate)	-7,700
	—All taxable income² taxed at flat rate of 40 per cent, (higher rate)	+20,000
(ii)	Total income¹ of single person or at least one member of couple exceeds £40,000 p.a.
	—All taxable income² taxed at flat rate of 23 per cent, (basic rate)	-7,700
	—All taxable income² taxed at flat rate of 40 per cent, (higher rate)	+8,800
¹ Total income subject to tax, including earnings from employment, self-employed income, investment income and taxable social security benefits.
² Income subject to tax less tax allowances and reliefs which are available at the marginal rate.