§ Mr. Meacher
asked the Chancellor of the Exchequer on the basis of known evidence of the ownership of capital according to distribution of income data, what he estimates to be the gain for each year since 1978, respectively, at current prices and at real 1984–85 prices, of (a) the relaxations in capital transfer tax and capital gains tax, and (b) the raising of the threshold and ultimate abolition of I he investment income surcharge to those with incomes below (i) £10,000, (ii) £10,000 to £30,000, (iii) £30,000 to £50,000 (iv) above £50,000 both in total amounts and in average per tax unit.
§ Mr. Moore
[pursuant to his reply, 8 May 1984, c. 314]: The table shows the reductions in tax payable in respect of 1984–85 under the Budget proposals, compared to the tax which would be payable if 1978–79 thresholds and rate bands (indexed by the change in the RPI) were in force:
Numbers of taxpayers under: Reduction in tax 1978–79 indexed regime 1984 Budget proposals Average reduction per taxpayer* £ million thousand thousand £ Capital transfer tax 150 60 25 2,500 Capital gains tax 150 300 110 500 Investment income surcharge 560 700 — 800 *Calculated on the numbers liable under the 1978–79 indexed regime.
I regret that information is not available to allocate by range of income the reductions in capital transfer tax and capital gains tax. The allocation by income range of the amount of investment income surcharge which would be payable in respect of 1984–85 under the 1978–79 indexed regime (and the numbers of taxpayers liable) is as follows:
Total income in 1984–85: Amount Numbers liable Average amount per surcharge payer Lower limit (£) £ million thousands £ 0 30 160 190 10,000 260 425 610 30,000 120 75 1,600 50,000 150 40 3,750 All ranges 560 700 800
I regret that analyses of the effects of individual Budgets since 1979 could be provided only at disproportionate cost.