§ Mr. Simeonsasked the Chancellor of the Exchequer if he will take steps to ensure that those in retirement are not coded in anticipation of the pension increase already announced but which will not be received by pensioners until the autumn.
§ Mr. NottPension increases payable from next autumn are not being taken directly into account in PAYE codes until then. If however a code contains an allowance for marginal age exemption relief, the amount of that allowance depends on an estimate of the total income for the full tax year to 5th April 1974. The increased rate of pension from October is included in the total income for the purpose of calculating the relief now allowed in the code. If a pensioner so requests, the tax office will recompute the coding allowance for marginal age exemption relief to exclude the autumn 1973 pension increase but the adjustment to be made in the autumn will then be correspondingly larger.
If my hon. Friend has a particular case in mind perhaps he will send me details.
§ Mr. Simeonsasked the Chancellor of the Exchequer why some pensioners are being taxed in anticipation of a pension increase.