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 the income tax rate of 60 per cent. was charged on incomes over £250,000 per annum.
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 £250,000 or above were charged at 60 per cent., with a rate of 4.5 per cent. for dividend income, excluding behavioural responses, is estimated to be around £3.5 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.