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Taxation

Volume 114: debated on Wednesday 8 April 1987

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asked the Chancellor of the Exchequer if he will list (a) the number of married women whose investment income was assessed to tax as that of their husbands' during the tax years 1982–83, 1983–84, and 1984–85, (b) the total gross income so assessed in each year and (c) the tax received thereon.

[pursuant to his reply, 16 March 1987, c. 387]:The Surveys of Personal Income for the years specified indicate that about 1½ million married women

Effect of Transferable Allowances1 at 1987–88 Income levels
Paying less taxPaying more tax
Total Income (lower limit) £ per weekNumbers thousandsAnnual tax change £ millionNumbers thousandsAnnual tax change £ millionAnnual tax change £ million
Married Couples aged under 65—both earning
Under 60
60–10030-520-5
100–15090-15270+ 70+ 55
150–200140-20530+ 155+ 135
200–300250-351,790+ 580+ 545
300–40090-101,460+ 510+ 500
Over 400130-451,070+ 340+ 295
All730-1305,140+ 1,655+ 1,525
Married Couples aged under 65—one earning
Under 6010
60–100210-3510+ 5-30
100–150620-17070+ 15-155
150–200910-25550+ 10-245
200–3001,550-44040+ 10-430
300–400500-14510-145
Over 400390-19510-195
All4,180-1,240200+ 40-1,200
Married Couples aged 65 and over
Under 60
60–100140-10-10
100–150440-12090+ 20-100
150–200200-6090+ 20-40
200–300140-50100+ 10-40
300–40050-2040+ 5-15
Over 40080-9050+ 10-80
All1,050-350370+ 65-285
All Groups5,960-1,7205,710+ 1,760+ 40
1 At £2,425 for non-aged and with age allowances of £2,690 for aged 65–79 and £3,070 for aged 80 and over.

had investment income amounting to some £1¼ billion per annum on which the tax due would be about £500 million. This calculation treats the wife's investment income as the top slice of the couple's joint income. In practice, these figures underestimate the full amounts, because the surveys do not provide comprehensive coverage of investment income on which the liability to basic rate tax has been satisfied at source.