§ Mr. Robert Cookeasked the Chancellor of the Exchequer what instructions are being given to tax offices as regards the coding for Pay As You Earn purposes for 1961–62 of persons who at present receive the dependent relative allowance but whose dependants will, as a result of the proposed increase in the National Insurance pension, receive an income above the prescribed limit.
§ Mr. Selwyn LloydIt is not the Government's intention that the proposed4W increase in retirement pensions should have the effect of reducing the tax relief given to those who help elderly relatives. Subject, therefore, to Parliamentary approval of the National Insurance Bill which is now before the House, I propose to introduce legislation in next year's Finance Bill increasing the dependant's income limit for the maximum dependent relative allowance to £155, with a consequential increase to £230 in the income limit at which no allowance is due. I have authorised tax offices to proceed on this basis in fixing Pay As You Earn codings for 1961–62.