§ 15. Mr. Michael McNair-Wilsonasked the Chancellor of the Exchequer whether he is satisfied that the tax allowances proposed in his Budget benefit married couples more than single persons living together.
§ Mr. WakehamThe single and married personal allowances were increased by about the same percentage in the Budget, so the relative position of married couples and single people living together is broadly unchanged. This is one of the issues that is being considered in the context of the Green Paper on the taxation of husband and wife.
§ Mr. McNair-WilsonWill my hon. Friend confirm that, thanks to the raising of the additional personal allowance in the Budget, an unmarried couple with children are approximately £6 a week better off than a married couple in the same circumstances? If that is the case, will he remove this anomaly forthwith so that those who may be tempted to beat the taxman do not choose living in sin as a way of doing so?
§ Mr. WakehamThere is no evidence that couples choose not to marry, or to get a divorce, to take advantage of the tax rules. Nevertheless, I agree that the present position is open to criticism in a number of respects. The treatment of cohabitating parents is one of the unsatisfactory aspects and is being considered in the Green Paper.
§ Mr. HoramDoes the hon. Gentleman agree with the Association of Conservative Women that the married man's tax allowance should be abolished?
§ Mr. WakehamThis is one of the matters that the Government are considering in the Green Paper. I do not wish to add anything further.