Income Tax: Tax Rates and Bands

(asked on 10th November 2017) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate he has made of the total reduction in the income tax liability for additional rate taxpayers as a result of reducing the additional rate from 50 pence to 45 pence in each financial year since 2013-14.


Answered by
Mel Stride Portrait
Mel Stride
Secretary of State for Work and Pensions
This question was answered on 20th November 2017

The latest estimated cost of reducing the additional rate of income tax to 45 per cent is available on the government website, Budget 2013, page 66, table 2.2:

https://www.gov.uk/government/publications/budget-2013-documents

HMRC published a detailed evaluation of the impact of the 50 per cent tax rate on the Exchequer in 2012 ‘The Exchequer effect of the 50 per cent additional rate of income tax’. This remains the best available estimate of taxpayer responses to changes in the additional rate of tax. This report contains more information on the methodology for estimating the impact of the policy, specifically in annex A:

http://webarchive.nationalarchives.gov.uk/20130127161217/http://www.hmrc.gov.uk/budget2012/excheq-income-tax-2042.pdf

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