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Income Tax

Volume 175: debated on Thursday 5 July 1990

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26.

To ask the Chancellor of the Exchequer what increase in the rate of income tax would be required in 1990–91 for the top one-fifteenth earners to raise an additional £3 billion.

About 1 in 15 taxpayers will pay income tax at the higher rate in 1990–91. An increase of 10 percentage points in the higher rate of tax would increase the liability to income tax of this group by about £3 billion in a full year. This estimate takes no account of any behavioural effects that might result from such an increase.

44.

To ask the Chancellor of the Exchequer if he will make a statement on progress on the implementation of separate taxation for married couples.

Independent taxation of husbands and wives was successfully introduced on 6 April this year.

35.

To ask the Chancellor of the Exchequer what would be the estimated cost to the Treasury in a full year of making the married man's tax allowance transferable to non-working wives; and what is his policy as to the merits of making such a move.

Under independent taxation, the married couple's allowance will go to the husband in the first instance. However, if he has insufficient income to use it in full himself any surplus can be transferred to his wife—whether or not she is at work—against her own income of any kind for her to use.