§
Motion made, and Question,
That—
§ (1) in section 7 of the Income and Corporation Taxes Act 1970 (relief for persons over sixty-five with small incomes)—
- (a) for the references to £634 and £929 (income limits for exemption) there shall be substituted references to £700 and £1,000, and
- (b) for the reference to £245 (excess over those limits beyond which relief by reduction of tax is excluded) there shall be substituted a reference to £340; and
§
(2) section 16 of the Income and Corporation Taxes Act 1970 (relief in respect of dependent relative) be amended as follows:—
(a) in subsection (1) (relief limited by reference to total income of dependent relative) for the words 'does not exceed £412 a year' there shall be substituted the words does not in a year exceed by more than £100 a sum equal to the basic retirement pension for that year' and for the words from 'deduction' to the end of the subsection there shall be substituted the words 'deduction' from his total income of £100 reduced, if the total income of the person so maintained exceeds the basic retirement pension, by the amount of the excess';
(b) in subsection (2) (modifications of subsection (1) where claimant is a woman) for paragraph (b) there shall be substituted the following paragraph:—
'(b) unless she is a married woman living with her husband, for each reference in that subsection to £100 there shall he substituted a reference to 1945';
(c) at the end of subsection (2) there shall be inserted the following subsection:—
'(2A) For the purposes of this section "the basic retirement pension" for any year means the aggregate of the payments on account of retirement pension under section 30 of the National Insurance Act 1965 to which a person is entitled in that year by virtue of his own insurance if, throughout that year,—
(a) he fulfils the conditions in paragraphs (a) and (b) of subsection (1) of that section; and
(b) none of those payments is reduced under subsection (7) of that section (by reference to his earnings) or increased under any other provision of that Act'; and
(d) in subsection (3) (apportionment of relief where two or more persons jointly maintain a dependent relative) for the words from 'the £100 mentioned' to 'proviso to that subsection' there shall be substituted the words the deduction of £100 or less mentioned in that subsection in respect of the person so maintained';
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but this Resolution shall not require any change to be made in the amounts to be deducted or repaid under Section 204 (pay-as-you-earn) of the Income and Corporation Taxes Act 1970 before 4th May 1973.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.—[Mr. Barber.]
§ put forthwith pursuant to Standing Order No. 94 (Ways and Means motions), and agreed to.