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Income Tax: Scotland

Volume 474: debated on Tuesday 22 April 2008

To ask the Chancellor of the Exchequer (1) how many individuals in (a) Scotland, (b) each Scottish parliamentary constituency and (c) each Scottish local authority area were paying only the 10 pence starting rate of income tax as at 1 April 2008; (199169)

(2) what estimate he has made of the number of individuals in (a) Scotland, (b) each Scottish parliamentary constituency and (c) each Scottish local authority area who will (i) be better off, (ii) be worse off and (iii) will experience a neutral effect from the abolition of the 10 pence starting rate of income tax;

(3) how many households in (a) Scotland, (b) each Scottish parliamentary constituency and (c) each Scottish local authority area were paying only the 10 pence starting rate of income tax as at 1 April 2008;

(4) what estimate he has made of the number of households in (a) Scotland, (b) each Scottish parliamentary constituency and (c) each Scottish local authority area which will be (i) better off, (ii) worse off and (iii) will experience a neutral effect from the abolition of the 10 pence starting rate of income tax.

The removal of the 10p rate is part of a package of reforms announced in Budget 2007 that also involved changes to tax credits, which are awarded based on family income. As a result of these reforms four-in-five households in Scotland are better or no worse off than if they had not taken place. The average Scottish household will be £80 better off as a result of this package. It is not possible to estimate the impact of the reform package below devolved administration or Government Office Region level.

An estimate for the number of taxpayers in Scotland paying tax only at the starting rate of income tax for 2007-08 is provided in table T2.2, which is available from HM Revenue and Customs website.

http://www.hmrc.gov.uk/stats/income_tax/menu.htm

The effect of the package of personal tax reforms announced in Budget 2007 on taxpayers paying income tax only at the starting rate will depend on their individual circumstances, for example, whether they have dependent children, or their age.

Available information on the total number of taxpayers in Scotland, Scottish local authorities and each Scottish parliamentary constituency are shown in tables T3.13, T3.14 and T3.15 respectively, which can be found at the HM Revenue and Customs website.

http://www.hmrc.gov.uk/stats/income_distribution/menu.htm