§ 15. Mr. Hollandasked the Chancellor of the Exchequer if he will take steps to ensure that working wives, paying income tax separately from their husbands, shall receive, without reference to their husbands, all tax refunds due to them as a 694 result of overpayment on either their earned or unearned income.
§ Mr. Robert SheldonA wife who is separately assessed to tax from her husband already receives repayment of any tax overpaid on her earned or investment income without reference to her husband's tax position. Where a married couple elect for separate taxation of wife's earnings any tax overpaid by the wife in respect of those earnings is also repaid to her. But, since the husband remains responsible for any tax on the couple's joint investment income any repayment due on this investment income is normally made to him.
§ Mr. HollandDoes not the hon. Gentleman regard is as faintly Victorian for his inspectors to require a signed consent from a husband before agreeing to make a repayment to his wife of tax overpaid on her small savings investments—tax paid by her and on her own private income? Is not it time that the Treasury began to accord equality of treatment to all taxpayers irrespective of their sex?
§ Mr. SheldonThe hon. Gentleman is correct in saying that this just refers to wives' investment income, because there can be separate assesments for tax and, in addition, there is a separate taxation system known as the wife's earnings election, as the hon. Gentleman will realise. He will also understand that it is the intention of my right hon. Friend the Chancellor of the Exchequer to reintroduce aggregation. As a result, there will be the aggregation of the investment income necessary for this purpose.