To ask the Chancellor of the Exchequer what would be the revenue impact of raising the top rate of income tax to 50 per cent. on incomes over £50,000 per annum. [17039]

The estimated full year yield at 1997–98 income levels of increasing the top rate of income tax to 50 per cent. on taxable incomes above £50,000 per year is £2.7 billion. The yield includes the consequential effects on the yield of capital gains tax after allowing for likely changes in the volume of disposals. It does not take account of any behavioural effects which might result from the introduction of the new rate.