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Taxation: Top Rates

Volume 701: debated on Tuesday 20 May 2008

asked Her Majesty's Government:

Further to the Written Answer by Lord McKenzie of Luton on 2 August 2005 (WA 87-88), whether they will publish in the same form the top rate of direct tax on personal incomes in the United Kingdom for each year from 1975-76 to 2008-09. [HL3532]

An updated version of the table given in my reply to the noble Lord of 2 August 2005 (WA 87-88) is given below:

Single/Basic, non-aged personal allowance for a man with no children

Taxable income above which the highest rate is charged

Highest rate of income tax charged

Financial year average retail prices index

Single/Basic, non-aged personal allowance for a man with no children at 2007-08 prices

Taxable income above which the highest rate is charged at 2007-08 prices

1975-76

675

20,000

98.00

35.91

3,921

116,174

1976-77

735

20,000

98.00

41.40

3,703

100,768

1977-78

945

21,000

98.00

47.19

4,177

92,825

1978-79

965

24,000

98.00

51.11

3,938

97,949

1979-80

1,165

25,000

75.00

59.19

4,106

88,102

1980-81

1,375

27,750

75.00

68.85

4,166

84,072

1981-82

1,375

27,750

75.00

76.77

3,736

75,399

1982-83

1,565

31,500

75.00

82.20

3,971

79,934

1983-84

1,785

36,000

75.00

86.03

4,328

87,286

1984-85

2,005

38,100

60.00

90.37

4,628

87,942

1985-86

2,205

40,200

60.00

95.71

4,806

87,612

1986-87

2,335

41,200

60.00

98.78

4,931

87,000

1987-88

2,425

41,200

60.00

102.72

4,924

83,663

1988-89

2,605

19,300

40.00

108.88

4,991

36,975

1989-90

2,785

20,700

40.00

117,38

4,949

36,785

1990-91

3,005

20,700

40.00

128.74

4,869

33,539

1991-92

3,295

23,700

40.00

134.85

5,097

36,660

1992-93

3,445

23,700

40.00

139.11

5,166

35,537

1993-94

3,445

23,700

40.00

141.48

5,079

34,942

1994-95

3,445

23,700

40.00

145.35

4,944

34,012

1995-96

3,525

24,300

40.00

150.08

4,899

33,774

1996-97

3,765

25,500

40.00

153.73

5,109

34,600

1997-98

4,045

26,100

40.00

158.81

5,313

34,281

1998-99

4,195

27,100

40.00

163.76

5,343

34,519

1999-2000

4,335

28,000

40.00

166.35

5,436

35,110

2000-01

4,385

28,400

40.00

171.33

5,339

34,576

2001-02

4,535

29,400

40.00

173.88

5,440

35,269

2002-03

4,615

29,900

40.00

177.52

5,423

35,133

2003-04

4,615

30,500

40.00

182.48

5,275

34,864

2004-05

4,745

31,400

40.00

188.15

5,260

34,811

2005-06

4,895

32,400

40.00

193.11

5,287

34,997

2006-07

5,035

33,300

40.00

200.32

5,243

34,675

2007-08

5,225

34,600

40.00

208.59

5,225

34,600

Notes:

1. A single personal allowance was replaced with a basic personal allowance in 1990-91.

2. For 1975-76 to 1983-84, the highest rate charged includes investment income surcharge at 15 per cent, but this total rate would only apply if the taxpayer's income included investment income greater than the threshold for the highest rate of surcharge, which varied between £2,000 in 1973-74 and £7,100 in 1983-84.

3. Financial year average RPI available only up to 2007-08—therefore, equivalent data for 2008-09 are not available.