HC Deb 24 March 1999 vol 328 cc255-6W
Mr. Webb

To ask the Chancellor of the Exchequer if he will estimate(a) the number of pensioners who, as a result of the 1999 Budget, will pay income tax at a marginal rate of 10 per cent. and (b) how many of these pensioners have savings income taxable at the 20 per cent. rate; and if he will make a statement on the arrangements for reclaiming overpaid tax in such circumstances. [77003]

Dawn Primarolo

[holding answer 16 March 1999]: It is estimated that some 450,000 women aged 60 and over and men aged 65 and over will have a marginal rate of 10 per cent., and of these around 380,000 have savings taxable at 20 per cent.

Mr. Gibb

To ask the Chancellor of the Exchequer if he will estimate how many pensioners with a marginal rate of income tax of 10 per cent. after 5 April 1999 will have income from savings. [77162]

Dawn Primarolo

It is estimated that some 450,000 men aged 65 or over and women aged 60 or over will have a marginal rate of 10 per cent. Most of these taxpayers are likely to have some savings income, although by no means all of it may be taxable.

Mr. Gibb

To ask the Chancellor of the Exchequer if he will estimate how many pensioners have a marginal rate of income tax of(a) nil, (b) 20 per cent., (c) 23 per cent. and (d) 40 per cent. in 1998–99. [77163]

Dawn Primarolo

The numbers of women aged 60 or over and men aged 65 or over in 1998–99 with different marginal rates of income tax are shown in the table.

Marginal rate (percentage) Number (Thousand)
0 6,800
20 2,350
23 1,400
40 150

Mr. Gibb

To ask the Chancellor of the Exchequer if he will estimate how many pensioners will have a marginal rate of income tax of(a) nil, (b) 10 per cent., (c) 23 per cent. and (d) 40 per cent. in 1999–2000. [77164]

Dawn Primarolo

The estimated number of women aged 60 or over and men aged 65 or over in 1999–2000 with different marginal rates of income tax are shown in the table.

Marginal rate percentage Number (Thousand)
0 7,000
10 450
23 2,350
40 150

Mr. Burstow

To ask the Chancellor of the Exchequer if he will make it his policy to make the savings income of people of pensionable age subject to the 10p tax rate announced in the Budget. [77893]

Dawn Primarolo

[holding answer 22 March 1999]: The Chancellor announced that the 10p starting rate of income tax is being introduced to improve work incentives and to help make work pay. The 10p rate will be available to pensioners who pay tax on their earnings or pensions. The Budget has taken 200,000 pensioners out of tax. As a result, around two-thirds of pensioners will not pay tax.

Savings income is already taxed favourably. Most savers will continue to enjoy the benefit of the lower rate at 20p on their savings rather than the basic rate at 23p (22p from April 2000). And our introduction of Individual Savings Accounts in April this year means all savers—including pensioners—can invest substantial amounts tax-free each year.