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Taxation

Volume 124: debated on Friday 18 December 1987

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To ask the Chancellor of the Exchequer what has been the estimated increased yield from lowering the higher tax rate to 60 per cent.; and if he will make a statement.

I regret that it is not possible to isolate the effect of reducing the top rates of income tax, but the proportion of tax paid by the top 1 per cent. of taxpayers in 1978–79 (part of whose income was liable at rates of 60 per cent. or more) was 11·2 per cent. In 1987–88, the top I per cent. are estimated to pay 13·5 per cent. of the yield.

To ask the Chancellor of the Exchequer what representations he has received seeking a reduction in the basic rate of income tax.