Written question asked by Lord Taylor of Goss Moor (Liberal Democrat) on Wednesday, 8 January 2003, in the House of Commons. It was due for an answer on Wednesday, 15 January 2003. It was answered by Baroness Primarolo (Labour) on Wednesday, 15 January 2003 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what estimate he has made of the revenue yield of a 50 per cent. income tax rate on (a) taxable incomes and (b) gross incomes exceeding £100,000 per annum; if he will estimate in each case the (i) income tax and (ii) capital gains tax yield; and if he will make a statement. - Includes table.

Answer: Matthew Taylor:: To ask the Chancellor of the Exchequer what estimate he has made of the revenue yield of a 50 per cent. income tax rate on (a) taxable incomes and (b) gross incomes exceeding £100,000 per annum; if he will estimate in each case the (i) income tax and (ii) capital gains tax yield; and if he will make a statement. [90175] Dawn Primarolo: The full-year yield in 2003-04 of making the changes are set out in the table. _________________________________________________________________________________________________. (i) income tax yield (£ billion) (ii) capital gains tax yield (£ million) (a) 50 per cent. rate for taxable incomes 4.9 120 over £100,000 (b) 50 per cent. rate for gross incomes over 5.1 120 £100,000 _________________________________________________________________________________________________. The income tax estimates are based on the Survey of Personal Incomes and are consistent with the November 2002 Pre-Budget Report. These estimates exclude any behavioural response to the tax change. Capital gains tax estimates take into account the likely effect on yield of changes in the volume of disposals in a full year caused by taxpayers' behaviour.

Secondary information