Income Tax

Treasury written question – answered on 22nd February 2010.

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Photo of Hywel Williams Hywel Williams Shadow PC Spokesperson (Education), Shadow PC Spokesperson (Work and Pensions), Shadow PC Spokesperson (Health), Shadow PC Spokesperson (International Development)

To ask the Chancellor of the Exchequer what estimate his Department has made of the additional amount of revenue that would be raised in 2010-11 if an income tax rate of 50 per cent. was charged on incomes over £100,000 per annum.

Photo of Stephen Timms Stephen Timms Parliamentary Under-Secretary (Department for Business, Innovation and Skills) (Digital Britain) (also HM Treasury), Financial Secretary (HM Treasury) (also in the Department for Business, Innovation and Skills)

holding answer 4 February 2010

The information requested is available only at disproportionate cost, due to the work needed to take account of the potentially significant behavioural responses.

The amount of additional revenue that would be raised if incomes at £100,000 or above were charged at 50 per cent., excluding behavioural responses, is estimated to be around £2.0 billion for 2010-11. This estimate is based on the 2006-07 Survey of Personal Incomes projected forward using pre-Budget 2009 assumptions. In practice, however, behavioural responses would reduce this yield significantly.

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