Income Tax
(asked on 26th October 2017) - View Source
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what proportion of income tax was raised from the (a) top-earning one, (b) top-earning 10 and (c) bottom-earning 10 per cent in (i) 2017, (ii) 2010, (iii) 1997 and (iv) 1979.
The estimates for the proportion of income tax raised from the top-earning one, top-earning 10 and bottom-earning 10 per cent are provided for 1996-97, 2009-10 and 2016-17 tax years in the table below. The percentile groups ranged on total income before tax. Estimates for the proportion of income tax raised in the 1978-79 tax year are not available.
Share of Total Income Tax Liability | |||
| Top(3) | Bottom(3) | |
| 1% | 10% | 10% |
1996-97 | 20.0 | 48.0 | * |
2009-10 | 26.5 | 54.9 | 0.6 |
2016-17(1)(2) | 26.9 | 58.5 | 0.4 |
*This figure is not available.
(1) Projected estimates based upon the 2014-15 Survey of Personal Incomes using economic assumptions consistent with the OBR’s March 2017 economic and fiscal outlook.
(2) Prior to 2016-17, total income includes the amount of dividends plus dividend tax credit (one ninth of the dividend), the grossed dividend, and income tax is charged on the grossed dividend. The tax due can be satisfied (in part) by the notional tax credit (10% of the grossed dividend). The table reflects the grossed dividend in total income and shows the income tax liability before the tax credit is offset. From 2016-17 the dividend tax credit is abolished, effective dividend tax rates are increased by 7.5% and a £5,000 Personal Dividend Allowance is introduced. This affects the measure of total income and leads to a discontinuity in the basis on which tax liabilities are presented between 2015-16 (and earlier) and 2016-17, so the share of incomes and tax liabilities are not directly comparable.
(3) Percentile groups ranged on total income before tax.