§ Lord Marlesford
asked Her Majesty's Government:
Whether they will update for the financial year 1993–94 (as announced in the Budget) the table of marginal tax rates published in the House of Lords Hansard for 16th March 1992 (cols. WA 89–92); and
Whether they will indicate for each year from 1957–58 the income threshold at which a married man with two children would be liable to a rate of tax of 40 per cent., showing for each year the threshold in both current prices and 1993–94 prices.
The Earl of Caithness
The information is given in the table below:101WA
1 1971–72 to 1972–73: Standard rate plus highest rate of surtax. The figures in brackets represent the top marginal rate of tax on investment income.
1973–74 to 1983–84: Highest rate of income tax. The figures in brackets represent the top marginal rate on investment income.
2 by reference to movements in the general index of retail prices.
3 There was no 40 per cent. tax rate in 1974–75. The figures quoted refer to the levels at which a 43 per cent. tax rate was charged. Figures for years before 1973–74 cannot be provided on a directly comparable basis.
4 Budget proposals. Following the reduction of the tax liability on dividend income below the basic rate limit to 20 per cent. and the requirement that dividend income be treated as the top slice of income, a small number of taxpayers with both earned and dividend income may be subject to a marginal rate of 45 per cent. on earned income.102WA