§ Single person
- No income tax is levied on the first £1,030 of net taxable income.
- A 22 per cent. rate applies to the band of taxable income from £1,030 to £4,060.
- Thereafter the rate rises gradually to 56 per cent. which applies to the band of taxable income in excess of £29,220.
§ Married couple with no dependent children making a joint return
- No income tax is levied on the first £2,060 of net taxable income.
- A 22 per cent. rate applies to the band of taxable income from £2,060 to £8,120.
- Thereafter the rate rises gradually to 56 per cent. which applies to the band of taxable income in excess of £58,440.
- (a) The figures relate to 1986 except in the case of France where the 1985 figures are quoted. France will not fix its rates for 1986 until the end of the year.
- (b) The bands of taxable income have been converted to sterling at the purchasing power equivalent to sterling in November 1985 (the latest available figures). The purchasing power equivalents are calculated on the basis of updated OECD figures.
- (c) There are also local income taxes in Japan, Canada and the United States of America. These constitute a not insignificant additional tax burden.
- (d) Social security contributions vary from country to country and are paid in addition to income tax.
- (e) Methods of computing taxable income differ widely from one country to another. Greater or larger reliefs and deductions are allowed in calculating taxable income. A mere comparison of tax rates does not therefore give a complete picture.