Working Widows (Tax) (Hansard, 14 November 1974)

§ 16. Mr. Farr
asked the Chancellor of the Exchequer if he will take steps to relieve working widows from income tax.

§ Dr. Gilbert
I share the concern that lies behind the hon. Gentleman's Question, but I do not think a special tax relief to working widows is the best way to proceed. The better alternative is to increase their pensions, as we propose to do again next April.

§ Mr. Farr
Is the hon. Gentleman aware that there is an almost unanswerable case for relieving widows from the payment of income tax? Will he assure the House that the aim of the Government will be to bring about that position eventually?

§ Dr. Gilbert
No, Sir. I must tell the hon. Gentleman that we prefer to proceed by uprating the tax threshold and by increasing widows' pensions. To advance in the way suggested by the hon. Gentleman would give no benefit to widows who are not paying income tax.

§ Mr. Hooley
Does my hon. Friend agree that another method would be to restore what existed for many years, namely, a reduced rate of income tax at the lower level of the chargeable bracket? It is the destruction of that that has done so much damage to people on low incomes, including working widows.

§ Dr. Gilbert
I take my hon. Friend's point, and I can say that the whole structure of allowances and of the tax system is under constant review by my right hon. Friend.

§ Mrs. Chalker
Will the hon. Gentleman give an undertaking that the Government will consider the special tax burdens suffered by widows under 40 who are not in receipt of pension and who suffer most grievously under present injustices?

§ Dr. Gilbert
I take note of the point made by the hon. Lady. I do not think I should leave the subject without pointing out that under the capital transfer tax system to be put before the House my right hon. Friend is proposing considerable reliefs for widows, for the first time in history, estates passing to a widow will be relieved totally from tax, and this will be a great relief for them.