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Income Tax

Volume 506: debated on Monday 22 February 2010

To ask the Chancellor of the Exchequer what estimate his Department has made of the amount of revenue that would be lost in 2010-11 if the personal tax allowance was raised to £10,000. (315721)

The information requested can be approximated from HM Revenue and Customs' table 1.6 ‘Direct effects of illustrative tax changes’, available at:

http://www.hmrc.gov.uk/stats/tax_expenditures/table1-6.pdf

To ask the Chancellor of the Exchequer what estimate his Department has made of the additional amount of revenue that would be raised in 2010-11 if an income tax rate of 50 per cent. was charged on incomes over £100,000 per annum. (315722)

[holding answer 4 February 2010]: The information requested is available only at disproportionate cost, due to the work needed to take account of the potentially significant behavioural responses.

The amount of additional revenue that would be raised if incomes at £100,000 or above were charged at 50 per cent., excluding behavioural responses, is estimated to be around £2.0 billion for 2010-11. This estimate is based on the 2006-07 Survey of Personal Incomes projected forward using pre-Budget 2009 assumptions. In practice, however, behavioural responses would reduce this yield significantly.

To ask the Chancellor of the Exchequer what estimate his Department has made of the additional amount of revenue that would be raised in 2010-11 if the national insurance contribution ceiling was removed. (315723)

[holding answer 4 February 2010]: The additional amount of revenue that would be raised from the removal of the upper earnings limit for employees paying Class 1 national insurance contributions and the upper profits limit for self employed individuals paying Class 4 contributions is estimated to be around £11 billion in 2010-11.

This figure excludes any estimate of behavioural effects which are likely to be significant given the scale of the change. The estimate is consistent with the 2009 pre-Budget report assumptions.

To ask the Chancellor of the Exchequer what estimate his Department has made of the additional amount of revenue that would be raised in 2010-11 if the income tax rate of 60 per cent. was charged on incomes over £250,000 per annum. (315724)

[holding answer 4 February 2010]: The information requested is available only at disproportionate cost, due to the work needed to take account of the potentially significant behavioural responses.

The amount of additional revenue that would be raised if incomes at £250,000 or above were charged at 60 per cent., with a rate of 4.5 per cent. for dividend income, excluding behavioural responses, is estimated to be around £3.5 billion for 2010-11. This estimate is based on the 2006-07 Survey of Personal Incomes projected forward using pre-Budget 2009 assumptions. In practice, however, behavioural responses would reduce this yield significantly.

To ask the Chancellor of the Exchequer what estimate he has made of the percentage of income tax due which was collected in (a) Scotland and (b) the UK in (i) 2008 and (ii) 2009. (317051)

Information on income tax liabilities in Scotland and the UK can be found in table 3.11 “Income and tax by gender, region and country” on the HM Revenue and Customs website at:

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

The information is based on the Survey of Personal Incomes, of which 2006-07 is the latest available. Information for 2008-09 and 2009-10 will be published during 2011 and 2012 respectively.