§ I come now from those Customs points to some points affecting Inland Revenue. The Finance Bill will give effect to two proposals I have already announced, namely, to make it clear that tax is chargeable on the increased payments from United Kingdom funds that form part of the pensions of certain non-resident civilians who were formerly in Indian Government service; and, secondly, to increase the income limit for purposes of the dependent relative allowance from £155 to £180 to take account of the recently authorised increases in standard National Insurance pensions.
§ I would also like to give advance notice of a change in the child allowance provisions to operate from 1964–65. It has long been a source of complaint that when a child's income exceeds the income limit, by however small an amount, the child allowance is wholly lost to the parent. To meet this situation I propose in such cases that the child allowance shall not be lost but shall be reduced, pound for pound, by the excess of the child's income over the income limit.
462§ In practice, this provision will impose a large additional work burden on the Inland Revenue, and in view of its other current commitments it cannot be faced this year, but, as I have said, the legislation will be in this year's Finance Bill, and the new tapering will operate for the year 1964–65. A special procedure Resolution will be required to permit the inclusion in the Bill of a provision which will take effect in a future year.