Mr Major’s Written Parliamentary Answer on Taxation – 16 March 1990

Below is the text of Mr Major’s written Parliamentary Answer on Taxation on 16th March 1990.

Mr. Denzil Davies To ask the Chancellor of the Exchequer what percentage of the earnings of a married man in the present fiscal year, assuming a mortgage of £30,000 and a mortgage interest rate of 14 per cent., would be paid in income tax and national insurance payments if his earnings were(a) £15,000, (b) £20,000, (c) £25,000, (d) £50,000, (e) £100,000 and (f) £250,000.

Mr. Major The information is in the table:

Percentage of earnings paid in income tax and national insurance contributions (1) by married man (2) at 1989–90 levels of income

£ per annum | Earnings per cent.

15,000 16.1

20,000 20.6

25,000 21.9

50,000 29.7

100,000 34.8

250,000 37.9

(1) Based on the post-October 1989 rates.

(2) Calculations assume that the married man has no other forms of income and that he does not receive any tax allowances or reliefs other than mortgage interest relief of £4,200 per annum – the interest paid on his £30,000 mortgage at a rate of 14 per cent. – and the married man’s allowance.