§ 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.