Income Tax Mr. Sproat asked the Chancellor of the Exchequer how many persons have given as their employment for purposes of income tax assessment, astrologer, palmist, numerologist, yoga adept, psychic consultant, or other related practices. Mr. Robert Sheldon I would refer the hon. Member to the reply given to him on 1st April.—[Vol. 929, c. 294–5.] Mr. Knox asked the Chancellor of the Exchequer by how much the standard rate of income tax rose or fell between November 1951 and October 1964, between November 1964 and June 1970, between July 1970 and February 1974 and between March 1974 and March 1977. Mr. Robert Sheldon The standard or basic rate of tax for the relevant fiscal years was as follows: --------------- | | --------------- |November 1951|…| --------------- | ||| --------------- |October 1964 |…| --------------- | || --------------- |November 1964|…| --------------- | ||| --------------- |June 1970 |…| --------------- | ||| --------------- |July 1970 |…| --------------- | ||| --------------- |February 1974|…|| --------------- |March 1974 |…|| --------------- |March 1977 |…|| --------------- Mr. Parkinson asked the Chancellor of the Exchequer what amount of the estimated outturn of income tax for 1976–77 of £17,030 million, and the 1977–78 forecast of £18,065 million, relates to taxes at the higher rates. Mr. Robert Sheldon The tax at higher rates included in the estimated receipts of income tax for 1976–77 and the post-Budget forecast for 1977–78 is £2,380 million and £2,405 million respectively. These figures include the basic rate element of tax at the higher rates. Mr. Lawson asked the Chancellor of the Exchequer what would be the cost, both in 1977–78 and in a full year, of raising the P11 D limit, defining higher-paid employees for the purposes of Section 69 of the Finance Act 1976, from £5,000 to (a)£6,000, (b) £7,000 and (c) £8,000. Mr. Robert Sheldon , pursuant to his reply [Official Report, 4th April 1977; Vol. 929, c. 347], gave the following information:Information on which to base precise figures is not available, but it is estimated that in a full year the cost would be about £7 million, £10 million and £12 million respectively. About two-thirds of the cost in each case would be incurred in the first year in which the charge was made. Mr. Lawson asked the Chancellor of the Exchequer, of the estimated outturn of income tax for 1976–77 of £17,030 million, and the 1977–78 forecast after all Budget changes including those of a conditional nature of £18,065 million, what amount relates in each case to tax at the higher rates. Mr. Robert Sheldon , pursuant to his reply [Official Report, 4th April 1977; Vol. 929, c. 347], gave the following information:The tax at higher rates included in the estimated receipts of income tax for 1976–77 and the post-Budget forecast for 1977–78 is £2,380 million and £2,405 million respectively. These figures include the basic rate element of tax at the higher rates. Mr. Lawson asked the Chancellor of the Exchequer what is his estimate of the breakdown of the £2,293 million of income tax reliefs granted in his Budget between the amount that will accrue to taxpayers with incomes of £4,000 or less and the amount that will accrue to those with incomes in excess of £4,000; and what the corresponding amount would have been merely to keep pace with inflation over the past 12 months. Mr. Robert Sheldon pursuant to his reply [Official Report, 4th April 1977; Vol. 929, c. 348], gave the following information:It is not possible to give a breakdown by range of income for the £43 million tax relief relating to the treatment of foreign earnings, retirement annuities and savings bank interest, but for the remaining £2,250 million the figures are as follows: ------------------------ |Total net incomes*| | | ------------------------ |Under £4,000 |…|…| ------------------------ |£4,000 and above |…|…| ------------------------ On the basis of the increase in the retail price index between April 1976 and February 1977 expressed at an annual rate, the cost of revalorising the main tax allowances—excluding the child tax allowances—and the tax rate bands would have been about £1,620 million, broken down as follows: -------------------- | | | -------------------- |Under £4,000 |…|…| -------------------- |£4,000 and above|…|…| -------------------- Mr. Patrick Jenkin asked the Chancellor of the Exchequer how he proposes to compensate those parents of students over 19 years of age for the reduction in child tax allowances for the rest of the current academic year who do not qualify for the transitional relief set out in the reply by the Chief Secretary to the hon. Member for Islington, South and Finsbury (Mr. Cunningham) on 29th March 1977. Mr. Robert Sheldon pursuant to his reply [Official Report, 4th April 1977; Vol. 929, c. 348], gave the following information:As announced by my right hon. Friend the Secretary of State for Education and Science on 28th March, the parental contribution towards grant is to be adjusted from the beginning of the 1977–78 academic year to compensate for the reduction in child tax allowances. The adjustment will apply for the full academic year, corresponding with the tax year for which the allowance is reduced, and will thus generally include a final term in the subsequent tax year for which the parent would not ordinarily in any event receive the child tax allowance since the child's income would exceed the income limit. Parents of students whose courses end this summer will not benefit from the adjustment, but similarly they would not ordinarily get the child tax allowance for 1977–78 owing to the size of the child's income. Mr. Patrick Jenkin asked the Chancellor of the Exchequer if a high income tax payer will be given the option, if it is to his advantage, of refusing the minimum grant of £80 for the next academic year and keeping the child tax allowance at the 1976–77 level.----------------------------------------------------- |Between: | | | | | | | ----------------------------------------------------- |1st November 1951 and 31st October 1964|…|…|…|…|…|…|+17s. 2½d.| ----------------------------------------------------- |1st November 1964 and 30th June 1970 |…|…|…|…|…|…|+£1 3s. 5½d.| ----------------------------------------------------- |1st July 1970 and 28th October 1964 |…|…|…|…|…|…|-£0·7364*| ----------------------------------------------------- |1st March 1974 and 31st March 1977 |…|…|…|…|…|…|+£5·5228**| -----------------------------------------------------