HC Deb 15 April 1947 vol 436 c75

I have another Income Tax relief to offer, which, I hope, the Committee will think well to accept. This is in regard to the Dependent Relative Allowance, on which I have had a lot of correspondence, and on which I know there is considerable feeling of possible injustice. This allowance depends on the income of the relative. It is an allowance of £50 a year—that is the maximum—and, according to the income of the relative, the allowance tapers off. At present, if the income is less than £30 a year, the allowance is £50, and it gradually tapers off, and ceases altogether when the relative's income exceeds £80 a year. I propose that, in future, if the relative's only income is an old age pension, the maximum allowance of £50 shall still be given. If the relative has other income, giving more than £70 altogether, the allowance will taper off as before, but will not disappear until the income of the dependent relative is over £120 a year. This change is in recognition of the increase in the old age pension last year. It will cost £10 million in a full year, and £8 million this year and I am glad to, think that it will benefit one million taxpayers, with dependent relatives.