§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if he will estimate(a) the pre-tax income and (b) the taxable income needed by a married couple aged 65 with full basic state retirement pension and extra pension paid to one person (i) with and (ii) without an individual's tax allowance of dividend income, which would be required to incur an income tax liability of £5,000 in (A) this financial year, (B) 2001–02 and (C) in each of the last four financial years. [128114]
§ Dawn PrimaroloAn individual's income tax liability depends on the levels of income of different types that he or she receives and the tax reliefs due. A husband and wife are each taxed on their individual income.
Dividends paid on or after 6 April 1999 are taxed at 10 per cent. below the basic rate limit and carry a tax credit of 10 per cent. which meets that liability. From 1996–97 to that date, they were taxed at the lower rate of 20 per cent., with a 20 per cent. tax credit.