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Taxation And Net Income

Volume 828: debated on Tuesday 21 December 1971

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asked the Chancellor of the Exchequer whether he will publish in the OFFICIAL REPORT a table of figures giving the net return to a single man after payment of normal taxation receiving a salary of £14,000 per annum of which £4,000 is tax free, £20,000 of which £5,000 is tax free, and what a capital sum of £37,000 to such a person would be worth if normal taxation were paid thereon, if no tax were paid and if capital gains tax were levied.

The net amounts after tax are as follows:

Salary of £14,000Salary of £20,000
Net income from salary10,08812,914
Net addition if the extra £37,000 were treated as:
(a) earned income9,8779,279
(b) investment income4,9514,353
(c) not taxable37,00037,000
(d) a realised capital gain25,90025,900