ABSTRACT
The figures given by the Board of Inland Revenue of “Actual Income” assessed to tax have to be corrected for income of charities and other tax-free income, trading losses and evasion. Wage-earnings assessed to tax are excluded at this stage. Rates and social insurance charges paid by employers are allowed as deductions in assessment of income-tax, and so must be added to these figures for purposes of estimating the national income. The effective exemption limit for earned income was £150 in 1924 and £162 in 1928, while the limit for unearned income was £135 throughout. Bowley and Stamp make an estimate in order to exclude all unearned and “mixed” incomes between £135 and £150 in 1924. In this study, however, all assessed incomes are included, and estimates are made of the number and distribution according to amount of incomes below the limit of assessment.
