---

Treasury

Answer

Mr. Jack: To ask the Chancellor of the Exchequer with a starting rate of income tax at 10p on respectively the first £1,000, £1,500 to £2,000; £2,500, £3,000 of taxable income replacing the first £1,000, £1,500, £2,000, £2,500 and £3,000 of the current 20p income tax band, at what starting point of taxable income the basic rate would have to be set to ensure no overall loss of tax receipts either in the year of assessment for which these changes were made or in either of two following years. [1875] Dawn Primarolo: [holding answer 2 June 1997]: Based on the right hon. Member's assumption of no loss of tax revenue in a full year, the basic rate limit would need to be set at the levels given in the table. These assume 1997-98 income levels and that all other allowances and tax rates in 1997-98 are unchanged. Ô Ý+p-p-p-Ý Ý ÔŒ™#btNew 10p starting rate on first#ntValue of basic rate limit#et _________________________________________________________________________________________________. £1,000 £21,100 £1,500 £19,400 £2,000 £18,000 £2,500 £16,850 £3,000 £15,850 _________________________________________________________________________________________________. To repeat the same analysis in terms of no overall loss of tax receipts in 1997-98 and the following two years could be provided only at disproportionate cost.

Secondary information

Type

Written question

Reference

1875; 295 c447W

Session

1997-98

Subjects

Income tax Tax rates and bands Tax yields

Contains statistics

Yes