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Investment Income

Volume 898: debated on Monday 20 October 1975

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asked the Chancellor of the Exchequer if he will indicate the percentage of total investment income received by those with earned incomes below £1,000, by each successive £1,000 and up to £30,000, by those with earned incomes above £30,000 and by those with no earned income at all.

I regret that information is not available analysed by the ranges of income specified in the Question. Estimates have been made, however, for 1972–73 for a smaller number of ranges:

Range of net earned incomePercentage of net investment income
£
Under 1,00041
1,000–1,99916
2,000–2,99910
3,000–3,9996
4,000–4,9994
5,000–5,9993
6,000–7,9994
8,000–9,9992
10,000–11,9991
12,000–14,9991
15,000–19,9991
20,000 and over1
The remaining 10 per cent was received by those with no earned income at all.Net earned income and net investment income together constitute total net income which is defined in Inland Revenue Statistics 1974 at p.41. Earned income is as defined for income tax purposes, all other income being treated as investment income. The method of allocating deductions between earned and investment income is described at p. 173 of Inland Revenue Statistics 1974.These estimates do not include incomes below the effective exemption limit for Income Tax (£595).