§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer (1) what the(a) mean and (b) median taxable income of pensioners was in the most recent year for which information is available; [151639]
(2) if he will estimate the annual cost of exempting non-taxpayers from the abolition of payable tax credits on dividend income; [151642]
(3) what estimate he has made of the gains in income decile of cutting the basic and starting rates of tax on savings and dividends income to zero; and if he will make a statement; [151641]
89W(4) what estimate he has made of the gains (a) in absolute terms and (b) as a percentage of income by income decile, of increasing age- related personal allowances for all people aged over 65 years by £2,000; [151637]
(5) what estimate he has made of the (a) cost and (b) absolute and relative gain by income decile of increasing the amount of income subject to basic rate income tax by £6,000; and if he will make a statement. [151643]
§ Dawn Primarolo[holding answers 1 March 2001]: An analysis by range of income decile for increasing tax age-related allowances by £2,000 in 2001–02 is in the table:
Decile of total income Gains (£ million) Gain as a percentage of income Bottom 7 90 1— 8 310 2.6 9 380 2.8 Top 220 0.8 All 1,000 1— 1 It is not possible to provide a breakdown of the bottom deciles as the survey of personal incomes can only provide reliable estimates for the income of taxpayers. Note:
The estimates are based on the Survey 01 Personal Incomes and consistent with the November 2000 pre-Budget report.
In 2000–01 the mean and median taxable income for people of state retirement pension age are £3,700 and £0 respectively, where taxable income is defined as income above the appropriate personal allowance.
An analysis by range of income decile for cutting the basic and starting rates of tax on savings and dividends income to zero in 2001–02 is in the table:
Decile of total income Gains (£ million) Bottom 7 490 8 780 9 830 Top 1,010 All 3,000 Note:
The estimates are based on the Survey of Personal Incomes and consistent with the November 2000 pre-Budget report. It is not possible to provide a breakdown of the bottom deciles as the survey of personal incomes can only provide reliable estimates for taxpayers.
The cost of exempting non-taxpayers from the abolition of payable tax credits on dividend income is around £50 million in 2001–01 before allowing for behavioural effects.
An analysis by range of income decile for increasing the income tax basic rate limit by £6,000 in 2001–02 is in the table:
Decile of total income Gains (£ million) Bottom 9 0 Top 2,500 All 2,500 Note:
The estimates are based on the Survey of Personal Incomes and consistent with the November 2000 pre-Budget report.