§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer, pursuant to Cm 4917, if he will update his answers to the hon. Member for Northavon (Mr. Webb) of 3 July 2000,Official Report, column 15W, on pensions, and the hon. Member for Truro and St. Austell of 28 July 2000, Official Report, column 1011W, on capital gains tax, and 28 July 2000, Official Report, column 1016W, on taxation of incomes; and if he will make a statement. [138326]
§ Dawn PrimaroloResponsibility for pensions policy rests with the Secretary of State for Social Security.
Updated estimates, consistent with the November 2000 pre-Budget report, are as follows:
The full year cost of reducing the top rates of income tax (including dividends) by 10 percentage points is £8 billion in 2000–01.The yield from introducing a 50 per cent. rate on taxable income over £100,000 is given in another written answer which I am today giving to the hon. Gentleman (137844).
§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer, pursuant to his answer of 1 November 2000,Official Report, column 515W, on taxation, by what method the underlying assumptions of his answer of 28 July 2000, Official Report, column 1011W, and the Survey of Personal Incomes were used to produce his answer; and if he will update his answer using the new assumptions which will be published in the pre-Budget report. [137844]
§ Dawn Primarolo[holding answer 13 November 2000]: I refer the hon. Member to the answer I gave him on 1 November 2000, Official Report, column 515W.
Introducing a 50 per cent. rate of income tax on taxable income of over £100,000 would yield £2.9 billion in 2000–01 and for later years this figure will increase by on average £300 million per year. These estimates include tax on dividends, and taxable income has been defined as income after deducting the personal allowance.
These latest estimates are now based on the 1998–99 survey of personal incomes and are consistent with the November 2000 pre-Budget report.