GROSS PROFITS ASSESSED TO INCOME TAX
(From Inland Revenue Report)[1]
| 1893-4 | £673,700,000 | |
| 1894-5 | 657,100,000 | |
| 1895-6 | 677,800,000 | |
| 1896-7 | 704,700,000 | |
| 1897-8 | 734,500,000 | |
| 1898-9 | 762,700,000 | |
| 1899-1900 | 791,700,000 | |
| 1900-1 | 833,300,000 | |
| 1901-2 | 867,000,000 | |
| 1902-3 | 879,600,000 | |
| 1903-4 | 902,800,000 | [2] |
| 1904-5 | 912,100,000 | |
| 1905-6 | 925,200,000 | |
| 1906-7 | 943,700,000 | |
| 1907-8 | 980,100,000 | |
| 1908-9 | 1,010,000,000 |
It should be observed that these figures are for gross income, and some adjustments have to be made before we can arrive at the total income of that part of the nation which has the mingled pleasure and pain of paying Income Tax.
From the £1,010,000,000 brought under review in 1908-9, the Inland Revenue authorities allowed the following deductions before arriving at taxable incomes:—
| (a) | Exemptions in respect of incomes under £160 per annum | £58,400,000 |
| (b) | Abatements on incomes ranging from £160 per annum to £700 per annum | 120,300,000 |
| (c) | Life Insurance Premiums | 10,500,000 |
| (d) | Charities, Hospitals, Friendly Societies, etc. | 11,800,000 |
| (e) | Repairs to Lands and Houses | 40,100,000 |
| (f) | Wear and tear of Machinery and Plant | 22,900,000 |
| (g) | Other Allowances | 52,700,000 |
| Total Deductions | £316,700,000 |
So that Income Tax in 1908-9 was actually collected not upon £1,010,000,000 but upon £693,300,000.
But we have not to make all the above deductions in arriving at the actual income of the income tax paying class. We have only to deduct those items which are not the real income of that class, viz.:—
| (a) | Exemptions in respect of incomes under £160 per annum | £58,400,000 |
| (d) | Charities, Hospitals, Friendly Societies, etc. | 11,800,000 |
| (e) | Repairs to Lands and Houses | 40,100,000 |
| (f) | Wear and tear of Machinery and Plant | 22,900,000 |
| (g) | Other Allowances | 52,700,000 |
| £185,900,000 |
Deducting these items we get:—