HC Deb 24 February 1983 vol 37 c1044
9. Mr. Marlow

asked the Chancellor of the Exchequer if he will take steps to remove the fiscal disadvantages of marriage.

Mr. Ridley

The fiscal advantages and disadvantages of marriage was one of the issues set out for public discussion in the Green Paper on the taxation of husband and wife. The Government are considering the wide range of views expressed on the Green Paper and possible options for change.

Mr. Marlow

As it is not yet a crime for a couple to own two homes, or alternatively to save money during their lifetime and have an investment income from those savings, why is it that they would be better off in either case were they to live in sin rather than to stay married?

Mr. Ridley

Against that, there are considerable advantages both in capital gains tax and capital transfer tax for those who are married, rather than performing that rather less elegant way of cohabitating that my hon. Friend has mentioned. What is more, a two-earner married couple are currently entitled to £4,010 in personal allowances, whereas a two-earner unmarried couple are entitled to £3,130 in personal allowances. That seems to be an advantage for marriage.

Mr. Peter Bottomley

Will my right hon. Friend consider increasing child benefit as part of the fiscal advantages of having children within marriage. Will he also recognise that the withdrawal of the child tax allowances make child benefit an important part of raising the effective thresholds for those with children?

Mr. Ridley

I was animadverting to the fiscal advantages of marriage, and to stretch that to the consequences of having children is pushing me a little far. I confirm that child benefit is an essential method of support for the family and one that the Government have done their best to enhance.