To ask the Chancellor of the Exchequer what would be the net average gain or loss of those on gross incomes of between £20,280 and £27,000, £27,000 and £33,000, £33,000 and £50,000 and over £50,000, of an increase in the national insurance contributions upper earnings limit to £33,000, a 42 per cent. tax band between £33,000 and £50,000 and a 50 per cent. tax band on incomes over £50,000; and how many taxpayers are in each of the four income groups.

[holding answer 22 January 1992]: Information for 1992–93 is as follows for those with gross incomes in the ranges specified. The tax regime has been applied in terms of taxable income ranges—income after deduction of allowances and reliefs—with the thresholds specified.

To ask the Chancellor of the Exchequer what would be the net revenue implications in a full year of (a) an increase in the national insurance contributions upper earnings limit to £33,000, (b) a tax band of 42 per cent. on gross income between £33,000 and £50,000 and (c) a tax band of 50 per cent. on gross income over £50,000.

[holding answer 22 January 1992]: At 1992–93 levels of income an increase in the upper earnings limit for employees to £33,000 would yield about £1.4 billion in a full year. The imposition of a 42 per cent. tax rate on taxable incomes between £33,000 and £50,000 and 50 per cent. on taxable incomes over £50,000 would yield an additional £1·7 billion in a full year compared with statutory indexation. Taxable income is after deduction of reliefs and allowances. It is not possible to provide a cost of applying these rates to ranges defined in terms of gross incomes, because tax liability depends on the allowances and reliefs available to those concerned.