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Income Tax: Tax Rates and Bands

Volume 463: debated on Tuesday 24 July 2007

To ask the Chancellor of the Exchequer if he will estimate the net difference in income tax revenue collected since 1997 if the top rate of income tax had been uprated in line with earnings. (152028)

[holding answer 23 July 2007]: The estimated costs of uprating the threshold at which taxpayers start paying income tax at the higher rate in line with earnings from 1998-99 are in the table.

£ million

Cost

1998-99

40

1999-2000

340

2000-01

890

2001-02

1,020

2002-03

1,600

2003-04

1,830

2004-05

2,200

2005-06

2,470

2006-07

2,920

2007-08

3,240

These are based on the Survey of Personal Incomes, of which 2004-05 is the latest available. Estimates for later years are based on projections in line with Budget 2007 assumptions.