Income Tax (P.A.Y.E. Coding)

HC Deb 01 March 1955 vol 537 c1872

32. Mr. Russell

asked the Chancellor of the Exchequer the meaning of the term "double reduced rate restriction," sometimes used by the Inland Revenue on Income Tax coding forms.

Mr. R. A. Butler

This is an adjustment of P.A.Y.E. coding where an individual has more than one source of income falling within P.A.Y.E. Itis intended to correct the excessive allowance of reduced rate relief which would otherwise be given by the tax tables in such cases.

Mr. Russell

As this term is not very well known, could my right hon. Friend undertake to put a note on the coding form, if it is a term used very widely?

Mr. Butler

In the first place, I think it would be a good thing if my hon. Friend would read a letter which my hon. Friend the Financial Secretary is about to send him. When he has mastered that—I found some difficulty in mastering it—I hope that he will then appeal to me again to see whether he can get any further elucidation of this matter.