Income Tax 40 years ago.
Discussion
It just so happens I have a Whitaker's Almanac dated 1973 - and the section on income tax makes for interesting reading. As I was sixteen at the time and still at school none of this meant anything, it does now.
Standard rate of income tax was 38.75%, with earned income relief of two-ninths up to 4005 pounds, then 15%. Surtax was additional to this amount.
Single person tax free allowance was 460 pounds. Married couple 600.
Single person, tax on earned income of 1000 pounds, ave rate 12.3%
tax on earned income of 10,000 pounds 38.6%
tax on earned income of 100,000 pounds 71%
Unearned income 1000 pounds, 20.9%
10,000 pounds 58.8%
100,000 pounds 85.5%
Married couples with children had higher tax free thresholds
Not surprising there was a brain drain with income taxes at these sorts of levels
As a rough guide 1000 pounds in 1973 is now 10,400.
Not forgetting married women's earnings were added on to those of her husband!
Standard rate of income tax was 38.75%, with earned income relief of two-ninths up to 4005 pounds, then 15%. Surtax was additional to this amount.
Single person tax free allowance was 460 pounds. Married couple 600.
Single person, tax on earned income of 1000 pounds, ave rate 12.3%
tax on earned income of 10,000 pounds 38.6%
tax on earned income of 100,000 pounds 71%
Unearned income 1000 pounds, 20.9%
10,000 pounds 58.8%
100,000 pounds 85.5%
Married couples with children had higher tax free thresholds
Not surprising there was a brain drain with income taxes at these sorts of levels
As a rough guide 1000 pounds in 1973 is now 10,400.
Not forgetting married women's earnings were added on to those of her husband!
Thanks, that is fascinating. Being an accountant I do sleep in my anorak. 
The highest unearned IT rate was 98% AFAIK, 83% top rate, 15% Investment Income Surcharge, and I think that was in the late 1960s or early 1970s.
Anyone seriously wealthy left the country.
I can still remember that the top rate only came down from 60% to 40% in around 1990. One of Margaret Trasher's better ideas.
The highest unearned IT rate was 98% AFAIK, 83% top rate, 15% Investment Income Surcharge, and I think that was in the late 1960s or early 1970s.
Anyone seriously wealthy left the country.
I can still remember that the top rate only came down from 60% to 40% in around 1990. One of Margaret Trasher's better ideas.
In 1973, very few people would have been earning £10,000 - let alone £100,000.
The average secretarial wage around that time would have been between £2,000 and £4,000.
To put salaries in context, when I qualified as an accountant in 1980, my first salary as a fully qualified accountant was £6,000 - and I felt rich.
1973 was, however, the year of the October War between Israel and its Arab neighbours and within weeks of the war starting, fuel prices began to rocket. By 1975 we were looking at inflation rates well over 20%.
The average secretarial wage around that time would have been between £2,000 and £4,000.
To put salaries in context, when I qualified as an accountant in 1980, my first salary as a fully qualified accountant was £6,000 - and I felt rich.
1973 was, however, the year of the October War between Israel and its Arab neighbours and within weeks of the war starting, fuel prices began to rocket. By 1975 we were looking at inflation rates well over 20%.
Eric Mc said:
In 1973, very few people would have been earning £10,000 - let alone £100,000.
The average secretarial wage around that time would have been between £2,000 and £4,000.
To put salaries in context, when I qualified as an accountant in 1980, my first salary as a fully qualified accountant was £6,000 - and I felt rich.
I'm not sure where you got your wage figures from but from memory they seem well off real life. My dad had a haulage company, his average drivers were earning £45 per week, the higher paid ones which were working silly and illegal hours were earning £100-£150 per week which was very good money for the time. His secretaries/office staff would earn £20-30ish per week and this was in London and his company had a reputation for paying good wages. Things started changing later in the year and inflation really hit from 1974 onwards and I remember people were getting two or more pay rises a year until a pay and price freeze was introduced in 1976.The average secretarial wage around that time would have been between £2,000 and £4,000.
To put salaries in context, when I qualified as an accountant in 1980, my first salary as a fully qualified accountant was £6,000 - and I felt rich.
I was brought up in Ireland so there could well be wages differences between Ireland and the UK. However, in 1973, Ireland's currency was still linked to Sterling so there is a direct comparison.
I left school (or College as you lot say over here) in 1976 so a few years after 1973. However, I had spent quite a bit of time between 1973 and 1976 reading Irish government information leaflets which were issued to schools and colleges outlining the different trades and professionals and the likely wages/salaries that were on offer in each sector.
These leaflets were eventually discontinued because wage inflation in the mid 70s was so great that they became obsolete very quickly.
I left school (or College as you lot say over here) in 1976 so a few years after 1973. However, I had spent quite a bit of time between 1973 and 1976 reading Irish government information leaflets which were issued to schools and colleges outlining the different trades and professionals and the likely wages/salaries that were on offer in each sector.
These leaflets were eventually discontinued because wage inflation in the mid 70s was so great that they became obsolete very quickly.
Beggarall said:
Very interesting - in 1973 I was a relatively newly qualified doctor and earned about £2,000 pa after tax. Lived in hospital accommodation because of on call duties. Newly married but no kids. Ran a Morgan Plus 4 and have never been so well off since!
Shouldn't that be "wore Morgan plus fours"?Know the feeling.......
Beggarall said:
Very interesting - in 1973 I was a relatively newly qualified doctor and earned about £2,000 pa after tax. Lived in hospital accommodation because of on call duties. Newly married but no kids. Ran a Morgan Plus 4 and have never been so well off since!
That's all changed now, my daughter has to find her own accommodation, no more hospital accommodation and salary varies between £24K basic to about £35K when she' banded.Gassing Station | Finance | Top of Page | What's New | My Stuff