Tax Allowances

HM Treasury written question – answered on 25th January 2017.

Alert me about debates like this

Photo of Conor Burns Conor Burns Conservative, Bournemouth West

To ask Mr Chancellor of the Exchequer, how much has accrued to the public purse through the removal of personal allowances for annual incomes in excess of £100,000 in each of the last three years.

Photo of Jane Ellison Jane Ellison The Financial Secretary to the Treasury

The taper of the Personal Allowance for those earning above £100,000 is estimated to have accrued £2.7 billion in income tax in 2015-16, £2.4 billion in 2014-15 and £2.2 billion in 2013-14. Changes to the tax system affecting high income individuals involve significant behavioural responses which can impact revenues from such measures.

The Personal Allowance taper was introduced by the last Labour government. While the Government recognises that this feature of the income tax system can cause high marginal tax rates, the continued pressure on the public finances mean that the Government has been unable to remove it to date.

The estimates in this response are based on the 2013-14 Survey of Personal Incomes, projected to 2015-16 using economic assumptions consistent with the Office for Budget Responsibility’s November 2016 Economic and Fiscal Outlook.

Does this answer the above question?

Yes2 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.