Tax Allowances

128.

To ask the Chancellor of the Exchequer if he will publish a table showing information available to him on the tax allowances and tax reliefs given to single people and one and two-earner married couples in (a) Germany, (b) Italy, (c) France, (d) United States of America and (e) Holland with those in the United Kingdom together with the income band at each income tax rate chargeable.

Available information is given in the tables, which are supplemented by notes. All amounts have been converted to sterling using the latest available purchasing power parities.

Tax allowances
	Year of income	Single £	One-earner married couple £	Two-earner married couple £
Germany	1990	1,421	2,841	2,841
Italy	1989	Nil	1,930	1,930
France	1989	1,425	2,850	2,850
United States of America	1989	3,072	5,543	5,543
Netherlands	1990	1,162	2,324	2,324
United Kingdom	1989–90	2,785	4,375	7,160

Notes:

1. In Germany and France there are no personal allowances as such, but the tax tables incorporate a zero rate band. The figures given are the maximum amounts of income subject to tax on which no tax is due.

2. In Germany there is also an employment deduction of £496.

3. In Italy there are no personal allowances as such, but a married man may deduct £193 from tax due and therefore is not a net taxpayer unless income exceeds £1,930. In addition, employees receive an earned income credit of £215 on tax due. Thus, married employees are not net taxpayers unless their income exceeds £3,312, and single employees are not net taxpayers unless their income exceeds £2,150.

4. In France employees may also deduct 20 per cent. of earned income and 10 per cent. for employment-related expenses.

5. The Netherlands has a 4 per cent. employment income deduction (minimum £52, maximum £258).

Income band at each income tax rate chargeable
Year of income	Taxable income bracket £	Rate per cent
Germany 1990	see Note 1
Italy 1990	0– 2,671	10·0
	2,671– 5,300	22·0
	5,300– 13,272	26·0
	13,272– 26,586	33·0
	26,586– 66,402	40·0
	66,402– 132,846	45·0
	over 132,846	50·0
France 1989	0– 2,850	0·0
	2,850– 2,980	5·0
	2,980– 3,531	9·6
	3,531– 5,582	14·4
	5,582– 7,176	19·2
	7,176– 9,009	24·0
	9,009– 10,903	28·8
	10,903– 12,579	33·6
	12,579– 20,959	38·4
	20,959– 28,826	43·2
	28,826– 34,097	49·0
	34,097– 38,787	53·9
	over 38,787	56·8
United States of America (single) 1989	0– 11,175	15·0
	11,175– 27,048	28·0
	27,048– 56,084	33·0
	over 56,084	28·0
(married, joint returns) 1989	0– 18,645	15·0
	18,645– 45,090	28·0
	45,090– 93,566	33·0
	over 93,566	28·0
(married, separate returns)	0– 9,322	15·0
	9,322– 22,545	28·0
	22,545– 71,021	33·0
	over 71,021	28·0
Netherlands 1990	0– 10,718	35·1
	10,718– 21,436	50·0
	over 21,436	60·0
United Kingdom 1989–90	0—20,700	25·0
	over 20,700	40·0

Notes:

1. In Germany tax rates rise gradually from 19 per cent. to a top rate of 53 per cent. The top rate is reached at a taxable income of £29,787 (single) and £59,574 (married couple, joint return).

2. The income given for France are halved in the case of a single person.

Volume 165: debated on Tuesday 23 January 1990