States Assembly - question and answer - 3rd June 2008

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES

BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 3rd JUNE 2008

Question

Following his written response of 13th May to question 3873 when he stated that ‘many low to middle income earners will see a cut in their income tax’, will the Minister advise what figure he has for the percentage or absolute reduction in tax bills for those on marginal rate of income tax?

Answer

The reduction in tax bills depends on individual circumstances.

Examples of total tax cuts, in monetary terms, for the increases in exemption limits for the years 2007, 2008 and 2009, are:

                                                                       £

Single person                                                    374

Married man                                                     598

Single person, over age 63                                  414

Married couple, over age 63                                684

For one child not in further education                   135

For one child in further education                         270

As a further example of how generous these increases in exemption limits and child allowance have been, in 2006, a married couple, both working, with two children (one at University) and paying mortgage interest of £7,500, would not have become liable to income tax until their income exceeded £37,180. Due to these increases in exemption limits and child allowance, that very same married couple would not become liable to income tax in 2009 until their income exceeds £40,890.