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Income Tax And Surtax

Volume 886: debated on Thursday 20 February 1975

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49.

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table of figures giving the normal tax payable by a man with a wife allowance on salaries of £1,000 per annum up to £50,000 per annum at intervals of £1,000 per annum; and showing how much in each of these cases a tax-free allowance of £11·50 per day would be worth in each instance if it were classified as being taxable and taxed at normal rates in each category.

Yes. Assuming that the only tax allowance due is the married person's allowance, that the daily allowance of £11·50 is paid for 126 days in 1974–75 and that the allowance is treated as the top slice of the individual's total income the figures are as follows:

Annual salaryNormal tax payable in 1974–75Net value of allowances if taxable
£'000££
145971
2375971
3705971
41,035967
51,365887
61,733797
72,170724
82,657652
93,193609
103,773579
114,360536
124,990507
135,627464
146,307464
156,987434
167,674391
178,404391
189,134391
199,864391
2010,594333
2111,337246
2212,167246
2312,997246
2413,827246
2514,657246
2615,487246
2716,317246
2817,147246
2917,977246
3018,807246
3119,637246
3220,467246
3321,297246
3422,127246
3522,957246
3623,787246
3724,617246
3825,477246
3926,277246
4027,107246
4127,937246
4228,767246
4329,597246
4430,427246
4531,257246
4632,087246
4732,917246
4833,747246
4934,577246
5035,407246

asked the Chancellor of the Exchequer what was the percentage of income tax and surtax raised in each year since 1967 from the following groups of income recipients: (i) top 1 per cent., (ii) top 10 per cent., (iii) top 40 per cent., (iv) bottom 30 per cent., (v) bottom 10 per cent., and (vi) all incomes.

PERCENTAGE OF TOTAL INCOME TAX AND SURTAX PAID
1967–681968–691969–701970–711971–72
Group*
(i) Top 1 per cent.20½19½181615
(ii) Top 10 per cent.47½45474139½
(iii) Top 40 per cent.7877½807573½
(iv) Bottom 30 per cent.677
(v) Bottom 10 per cent.0·60·50·70·80·9
(vi) All incomes100100100100100
* Percentiles refer to numbers of income recipients.

asked the Chancellor of the Exchequer what was the percentage paid in: (a) income tax and surtax and (b) national insurance and graduated pension, in each year since 1967 by the following groups of income recipients: (i) top 1 per cent., (ii) top 10 per cent.,

INCOME TAX AND SURTAX AS A PERCENTAGE OF INCOME
1967–681968–691969–701970–711971–72
Group*
(i) Top 1 per cent.444546½4744
(ii) Top 10 per cent.2728323028
(iii) Top 40 per cent.18½2022½22½21
(iv) Bottom 30 per cent.689
(v) Bottom 10 per cent.345
(vi) All incomes151617½18½18
* Percentiles refer to numbers of income recipients.
I regret that information on a similar basis is not available for national insurance and graduated pensions contributions.