HC Deb 17 April 1978 vol 948 cc174-5

Motion made, and Question, That— (1) In paragraph (a) of subsection (1) of section 32 of the Finance Act 1971 (income tax charged at basic and other rates) for the words "income not falling within paragraph (b) below" there shall be substituted the words "income not falling within paragraph (aa) or (b) below"; and after that paragraph there shall be inserted— (aa) in respect of so much of an individual's total income as does not exceed such amount as Parliament may determine, at such lower rate or rates as Parliament may determine and; (2) After subsection (1) at that section there shall be inserted— (1A) In the case of a husband whose total income includes relevant earned income of his wife—

  1. (a) the income chargeable in accordance with paragraph (aa) of subsection (1) of this section shall be—
    1. (i) so much of his total income, other than relevant earned income of his wife, as does not exceed the amount referred to in that paragraph; and
    2. (ii) so much of the relevant earned income of his wife as does not exceed that amount; and
  2. (b) if there are two or more such rates as are referred to in that paragraph, those rates shall be applied separately to the income mentioned in subparagraph (i) and the income mentioned in sub-paragraph (ii) above,
and any provision charging income tax in accordance with that paragraph shall have effect accordingly. (1B) For the purposes of subsection (1A) of this section earned income of the wife has the same meaning as for the purposes of subsection (2) of section 8 of the Taxes Act and relevant earned income of the wife means so much of her earned income as exceeds the relief available in respect of it under that subsection. 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. Healey.] put forthwith pursuant to Standing Order No. 94 (Ways and Means motions), and agreed to.