Taxation

(asked on 9th May 2016) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate he has made of the proportion of gross income of the top one per cent income bracket which people in that bracket paid in (a) direct and (b) indirect tax in the most recent financial year for which data is available; and what proportion those sums are of gross national income in that same period.


Answered by
Greg Hands Portrait
Greg Hands
This question was answered on 12th May 2016

Statistics on the percentage of gross income paid in direct and indirect taxes by household income quintile are produced as part of the Office for National Statistics publication ‘The Effects of Taxes and Benefits on Household Income’, which can be found here: http://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/theeffectsoftaxesandbenefitsonhouseholdincome/2015-06-29

The latest release shows that in the financial year ending 2014, the top household income quintile paid 24% and 11% of gross income in direct and indirect taxes respectively.

It is not possible to identify the share of direct and indirect taxes paid by the top 1% of households using this data. However, data on the share of total income tax receipts paid by the top 1% of earners can be found in HM Revenue and Customs’ ‘Income Tax statistics and distributions’ publication, which can be found here:

https://www.gov.uk/government/collections/income-tax-statistics-and-distributions

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