Income Tax: Tax Rates and Bands

Mr. Gauke
To ask the Chancellor of the Exchequer if he will estimate the net difference in income tax revenue collected since 1997 if the top rate of income tax had been uprated in line with earnings.

Jane Kennedy
[holding answer 23 July 2007]: The estimated costs of uprating the threshold at which taxpayers start paying income tax at the higher rate in line with earnings from 1998-99 are in the table.

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|         |Cost |
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|1998-99  |40   |
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|1999-2000|340  |
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|2000-01  |890  |
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|2001-02  |1,020|
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|2002-03  |1,600|
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|2003-04  |1,830|
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|2004-05  |2,200|
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|2005-06  |2,470|
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|2006-07  |2,920|
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|2007-08  |3,240|
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These are based on the Survey of Personal Incomes, of which 2004-05 is the latest available. Estimates for later years are based on projections in line with Budget 2007 assumptions.