§ Mr. Ralph Howellasked the Chancellor of the Exchequer what was the estimated yield from redundancy payments in each of the last two years, on the basis that these payments were treated for income tax purposes as earned income.
§ Mr. Robert SheldonThe latest available figures for payments made by the Department of Employment under the Redundancy Payments Act are £97.5 million in 1972 and £66.6 million in 1973. If these amounts had been liable to tax and had been charged in full at the standard rate, with earned income relief, 459W at the basic rate the yield would have been about £29 million in 1972 and £20 million in 1973. However, some of those receiving redundancy payments may not have been liable to tax for the year in question and to this extent the yield would have been correspondingly reduced. I regret that information about redundancy payments not made under the Redundancy Payments Act is not available.