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Income Tax

Volume 949: debated on Tuesday 9 May 1978

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asked the Chancellor of the Exchequer what is the yield expected in 1978–79 from tax levied at the rate of 25 per cent. and from each £1,000 band of incomes taxed at 34 per cent.

, pursuant to his reply [Official Report, 27th April 1978; Vol. 948, c. 674], gave the following information:

national insurance contributions has been taken as receipts under the national insurance, national health, redundancy and maternity pay schemes; employees' national insurance contributions has been taken as contributions by employees, the self-employed and the unemployed to the national insurance and national health schemes. It should be noted that the tax base used in calculating these figures is different from that I used in answer to the hon. Member for Cornwall, North (Mr. Pardoe) on 28th April; and that the data below is on an annual year rather than a financial year basis.

In terms of accruals of tax rather than receipts the expected yield from tax levied at 25 per cent. is about £4½ billion. I regret that information is not available about the amount of income charged at 34 per cent. in each £1,000 band but the overall yield at this rate is about £13 billion. Both amounts are calculated at 1978–79 income levels and after taking account of the proposals in the Budget Statement.