<p>A distinctive freature of the British tax system is the very wide range of incomes which is subject to tax at the basic rate. In 1977 - 8, the first £6000 of taxable income was subject to tax at 34 per cent. In many other countries, there is an elaborately graduated schedule of marginal rates of tax. In 1978, a major departure from this pattern was made with the introduction of a reduced rate of tax of 25 per cent on the first £750 of taxable income. This innovation lasted two years until the reduced rate band was abolished in the 1980 budget. The first £11,250 of taxable income is now charged at the basic rate of 30 per cent.</p>
Authors
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
C N Morris
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
N A Warren
Journal article details
- DOI
- 10.1111/j.1475-5890.1980.tb00558.x
- ISSN
- Print: 0143-5671 Online: 1475-5890
- Issue
- July 1980
Suggested citation
Morris, C and Warren, N. (1980). 'The reduced rate band' (1980)
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