§ 62. Mr. Pethick-Lawrenceasked the Chancellor of the Exchequer what would be the loss to the Revenue if the incomes of married couple were assessed separately for the purpose of Income Tax while joint assessment was retained for the purpose of Surtax; and to what extent would this loss be reduced if separate assessments were confined to couples whose joint income did not exceed £1,000?
§ Sir K. WoodI am not sure exactly what my right hon. Friend has in mind. If married couples were for Income Tax 365 but not for Surtax purposes treated entirely as single persons, so that husband and wife each become entitled to the single personal allowance of £80, and to have the first £165 of his or her taxable income charged at the reduced rate of 6s. 6d., there would be not a loss but a net gain to the Exchequer of between £50,000,000 and £100,000,000, practically the whole of which would come from married couples with joint incomes of less than £1,000. This is due to the fact that in a large number of cases, the husband alone has income, and their treatment as single persons would result in an increase in the tax payable.