 |
answer text |
<p>i, ii and iii. The estimated impact of the additional rate on tax liabilities is
set out in Chapter 5 of the HM Revenue and Customs report “The Exchequer effect of
the 50 per cent additional rate of income tax”. This report sets out the latest estimates
of the taxable income elasticity, and the forestalling and other behavioural effects.
It is available at:</p><p> </p><p><a href="http://webarchive.nationalarchives.gov.uk/+/http:/www.hmrc.gov.uk/budget2012/excheq-income-tax-2042.htm"
target="_blank">http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/budget2012/excheq-income-tax-2042.htm</a></p><p>
</p><p> </p><p> </p><p>iv. In 1988 the top rate of income tax was reduced from 60
per cent to 40 per cent (the ‘higher rate’). The table below details the tax liabilities
for higher rate payers from 1997/98 to 2009/10. Comparable figures are not available
for the previous years.</p><p> </p><p> </p><p> </p><table><tbody><tr><td><p><strong>Tax
Year </strong></p></td><td><p><strong>Tax Liability after Deductions £million</strong></p></td></tr><tr><td><p>1997/1998</p></td><td><p>32,900</p></td></tr><tr><td><p>1998/1999</p></td><td><p>38,590</p></td></tr><tr><td><p>1999/2000</p></td><td><p>45,700</p></td></tr><tr><td><p>2000/2001</p></td><td><p>54,000</p></td></tr><tr><td><p>2001/2002</p></td><td><p>56,400</p></td></tr><tr><td><p>2002/2003</p></td><td><p>57,000</p></td></tr><tr><td><p>2003/2004</p></td><td><p>57,100</p></td></tr><tr><td><p>2004/2005</p></td><td><p>65,200</p></td></tr><tr><td><p>2005/2006</p></td><td><p>76,400</p></td></tr><tr><td><p>2006/2007</p></td><td><p>84,300</p></td></tr><tr><td><p>2007/2008</p></td><td><p>93,200</p></td></tr><tr><td><p>2008/2009</p></td><td><p>89,700</p></td></tr><tr><td><p>2009/2010</p></td><td><p>82,800</p></td></tr></tbody></table><p>
</p><p> </p><p> </p><p>v. Current and previous estimates of revenue from the 50% income
tax rate can be found in the Office of Budget Responsibility’s March 2012 Economic
Fiscal Outlook report, “Box 4.2: The additional rate of income tax”.</p><p> </p><p>
</p><p> </p><table><tbody><tr><td colspan="8"><p>£ billion</p></td></tr><tr><td> </td><td><p>Outturn</p></td><td
colspan="6"><p>Forecast</p></td></tr><tr><td><p>Liabilities Basis</p></td><td><p>2009-10</p></td><td><p>2010-11</p></td><td><p>2011-12</p></td><td><p>2012-13</p></td><td><p>2013-14</p></td><td><p>2014-15</p></td><td><p>2015-16</p></td></tr><tr><td><p>Underlying
Impact of 50p rate: Original Estimate</p><p>OBR estimate June 2010 (<a href="http://en.wikipedia.org/wiki/TIE"
target="_blank">TIE</a>=0.35)</p></td><td><p>0.0</p></td><td><p>2.5</p></td><td><p>2.5</p></td><td><p>2.7</p></td><td><p>2.9</p></td><td><p>3.2</p></td><td><p>3.5</p></td></tr><tr><td><p>Current
Costing<sup>1</sup></p></td><td><p>0.0</p></td><td><p>0.7</p></td><td><p>0.6</p></td><td><p>0.6</p></td><td><p>0.7</p></td><td><p>0.7</p></td><td><p>0.8</p></td></tr><tr><td><p>Difference</p></td><td><p>0.0</p></td><td><p>-1.8</p></td><td><p>-1.9</p></td><td><p>-2.1</p></td><td><p>-2.2</p></td><td><p>-2.5</p></td><td><p>-2.7</p></td></tr></tbody></table><p>
</p><p> </p><p> </p><p><sup>1 </sup><em>Based on the current estimates cost of reduction
in the rate from 50% to 40%</em></p><p> </p><p> </p><p> </p><p>vi. Chart 5.1 of the
HMRC Report details the number of taxpayers with incomes above £150,000 for the years
2000/01 to 2010/11 (see link above).</p><p> </p><p> </p><p> </p><p>The estimated number
of taxpayers liable to the additional rate of income tax for more recent years is
published in the HMRC National Statistics table 2.1 available at:</p><p> </p><p><a
href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/306826/Table_2.1.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/306826/Table_2.1.pdf</a></p><p>
</p><p> </p><p> </p><p>vii. Estimates of income tax liabilities by income range are
published in the HMRC National Statistics table 2.5 available at: <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/306857/Table_2.5.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/306857/Table_2.5.pdf</a></p><p>
</p><p>Shares of income tax liabilities by percentile group are available in table
2.4 at:</p><p> </p><p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/306831/Table_2.4.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/306831/Table_2.4.pdf</a></p><p>
</p><p>These estimates are based on the Survey of Personal Incomes (<a title="http://en.wikipedia.org/wiki/SPI"
href="http://en.wikipedia.org/wiki/SPI" target="_blank">SPI</a>) outturn data up to
2011-12, and then projected to 2013-14 in line with the <a title="http://en.wikipedia.org/wiki/Office_for_Budget_Responsibility"
href="http://en.wikipedia.org/wiki/Office_for_Budget_Responsibility" target="_blank">Office
for Budget Responsibility</a>'s latest economic and fiscal outlook.</p><p> </p>
|
|
