Marginal Tax Rates

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To ask the Chancellor of the Exchequer how many people faced marginal tax rates (a) including and (b) excluding social security, of (i) over 40 per cent., (ii) over 50 per cent., (iii) over 60 per cent., (iv) over 70 per cent., (v) over 80 per cent., (vi) over 90 per cent. and (vii) over 100 per cent. in every year since 1978–79, including 1991–92, in the United Kingdom.

[holding answer 24 February 1992]: Estimated numbers of taxpayers liable to income tax at rates above the basic rate are in the table. Estimates of the numbers with marginal net income deduction rates (taking account of the withdrawal of social security benefits) at or above certain levels were published in figure 20 of "Social Security. The Government's expenditure plans 1992–93 to 1994–95" (Cm 1914).

Taxpayers ¹ liable at higher rate
(thousands)
Tax rate²	1978–79	1979–80	1980–81	1981–82	1982–83	1983–84	1984–85	1985–86	1986–87	1987–88	1988–89	1989–90	1990–91 ³	1991–92 ³
40	235	302	334	445	435	355	380	380	400	360	1,350	1,500	1,660	1,620
45	158	168	216	305	245	245	255	250	300	320	—	—	—	—
50	86	108	129	170	155	140	145	150	210	240	—	—	—	—
55	84	43	52	75	65	55	65	70	90	110	—	—	—	—
60	54	53	65	95	83	65	85	100	120	160	—	—	—	—
65	45	—	—	—	—	—	—	—	—	—	—	—	—	—
70	32	—	—	—	—	—	—	—	—	—	—	—	—	—
75	36	—	—	—	—	—	—	—	—	—	—	—	—	—
80	33	—	—	—	—	—	—	—	—	—	—	—	—	—
TOTAL	763	674	796	1,090	983	860	930	950	1,120	1,190	1,350	1,500	1,660	1,620
¹ Single people and married couples for years up to and including 1989–90, individuals from 1990–91.
² Tax rate applicable to earned income. This excludes any liability to the investment income surcharge for years up to 1983–84.
³ Provisional estimates projected from the 1989–90 Survey of Personal Incomes.

Volume 205: debated on Monday 2 March 1992