Written question asked by Michael Jack (Conservative), in the House of Commons. It was due for an answer on Wednesday, 11 June 1997. It was answered by Baroness Primarolo (Labour) on Wednesday, 11 June 1997 on behalf of the Treasury.

Treasury

Question: By how much the basic rate limit would have to be reduced to ensure that with a starting rate of tax of 10 pence on the first (a) £1,000, (b) £1,500, (c) £2,000, (d) £2,500 and (e) £3,000 of taxable income to replace the first £1,000, £1,500, £2,000, £2,500 and £3,000 respectively, of the current 20p income tax band, while leaving all other tax rate bands and allowances unchanged, nobody currently paying tax at the higher rate of 40p would experience any reduction in their aggregate income tax liability. - (Holding answer 2 June 1997).

Answer: Mr. Jack: To ask the Chancellor of the Exchequer by how much the basic rate limit would have to be reduced to ensure that with a starting rate of tax of 10 pence on the first (a) £1,000, (b) £1,500, (c) £2,000, (d)£2,500 and (e) £3,000 of taxable income to replace the first £1,000, £1,500, £2,000, £2,500 and £3,000 respectively, of the current 20p income tax band, while leaving all other tax rate bands and allowances unchanged, nobody currently paying tax at the higher rate of 40p would experience any reduction in their aggregate income tax liability. [1858] Dawn Primarolo: [holding answer 2 June 1997]: Based on the right hon. Member's assumptions that the higher rate taxpayers do not gain from a new 10p starting rate, the basic rate limit would be as shown in the table below. _________________________________________________________________________________________________. Width of 10p band Reduce basic rate limit to (b) £1,500 £25,218 (c) £2,000 £24,924 (d) £2,500 £24,629 (e) £3,000 £24,335 _________________________________________________________________________________________________.

Secondary information