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Income Tax: Tax Rates and Bands

Volume 475: debated on Friday 16 May 2008

To ask the Chancellor of the Exchequer if he will estimate the change in tax revenues which would occur if incomes at £100,000 or above were taxed at a marginal rate of 50 per cent. in 2008-09. (205252)

The estimate of extra revenue if incomes at £100,000 or above were charged at 50 per cent. would be around £7.9 billion for 2008-09. This figure excludes any estimate of behavioural response which could be significant given the scale of the change.

This estimate is based on the 2005-06 Survey of Personal Incomes projected forward using Budget 2008 assumptions and includes changes announced in Budget 2007.

To ask the Chancellor of the Exchequer whether his proposals to compensate those who lost out as a result of the abolition of the 10p tax rate will extend to people over the age of 65 years; and if he will make a statement. (206287)

In Budget 2007, the Government announced an increase the age-related allowances for taxpayers aged 65 or over of £1,180 above indexation from April 2008. This is worth £236 a year to people benefiting in full from the age-related allowances, greater than the £232 a year maximum loss from the withdrawal of the 10p rate.