Taxes And Rates

To ask the Chancellor of the Exchequer how much tax and rates will be paid in the present financial year (a) by a married man, with two children, earning £250,000 a year, (b) by a single man, with no dependants, earning £250,000 a year, (c) by a married man, with two children, earning £100,000 a year, (d) by a single man, with no dependants, earning £100,000 a year, (e) by a married man, with two children, earning £25,000 a year, (f) by a single man, with no dependants, earning £25,000 a year, (g) by a married man, with two children, earning £7,500 a year and (h) by a single man, with no dependants, earning £7,500 a year, in each case assuming no other income.

[holding answer 8 March 1988]: The available information is given in the table.

Income tax liability in 1987–88
Annual Earnings	Single man	Married man
£	£	£
7,500	1,370·25	1,000·35
25,000	6,811·75	6,195·25
100,000	50,203·00	49,381·00
250,000	140,203·00	139,381·00

The calculations assume that the taxpayer has no other income and that he is not entitled to any allowances or reliefs other than the personal allowances. The number of children does not affect liability to income tax.Corresponding estimates on indirect taxes and local authority rates are not available

To ask the Chancellor of the Exchequer if he will give the figure for the projected yield of a 1 per cent. rate of income tax in 1987–88 in England and Wales, based on existing outturns of income tax.

[holding answer 14 March 1988]: For the United Kingdom as a whole, the revenue effect in a full year from a one penny change in the basic rate of income tax in 1987–88 is estimated at about £1·3 billion. Income tax liabilities of residents of England and Wales in 1985–86, the latest year for which data are available, were 89 per cent. of the total for the United Kingdom.