§ I now come to my proposals. First, I propose some relief for the taxpayer in the matter of the tax allowance for National Insurance contributions. Last year, as the Committee will remember, my predecessor introduced a new flat-rate allowance of £15 for adult employees. This was designed to meet the new situation which would arise when the graduated National Insurance scheme came into force. The new allowance was to take effect from 6th April, 1961. Since last year's Finance Act, National Insurance contributions have been increased. I propose to raise the flat-rate allowance to £18 to take 811 account of the pension element in the increase.
§ The increase in women's contributions is less than men's, and taken by itself would not justify an increase in the allowance of more than £2. I do not propose, however, to make any differentiation. All adult employees—other than women who have opted not to pay flat-rate contributions—will get an increased allowance of £3. There will be appropriate increases for the other classes affected. These changes will cost £12 million this year and £15 million in a full year.
§ Next, I have three proposals to make affecting the taxation of overseas income of people resident in the United Kingdom.