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Income Tax

Volume 227: debated on Monday 28 June 1993

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To ask the Chancellor of the Exchequer if he will estimate the revenue change in a full year at 1993–94 income levels and assuming existing levels of personal allowances of replacing the present rates of income tax with a structure in which (a) the first £2,500 incurred tax at 20 per cent., (b) £2,500 to £30,000 at 25 per cent., (c) £30,000 to £40,000 at 30 per cent., (d) £40,000 to £50,000 at 35 per cent., (e) £50,000 to £60,000 at 40 per cent., (f) £60,000 to £75,000 at 45 per cent., (g) £75,000 to £100,000 at 50 per cent. and (h) over £100,000 at 60 per cent.

The estimated revenue cost in a full year at 1993–94 income levels from imposition of the specified regime is £420 million. This does not allow for any behavioural effect that might result from such changes to the tax system and does not include capital gains tax.