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Income Tax

Volume 494: debated on Thursday 25 June 2009

To ask the Chancellor of the Exchequer what estimated additional revenue would be raised in 2010-11 by increasing the higher rate of income tax to 50 per cent. for one year for those with incomes in excess of £60,000 per annum from April 2010. (281528)

[holding answer 22 June 2009]: The estimated yield from lowering to £60,000 the threshold at which income will be taxed at the additional and dividend additional rates of 50 per cent. and 42.5 per cent. respectively is likely to involve significant behavioural effects. The estimated yield incorporating these behavioural effects can be provided only at disproportionate cost.