HC Deb 25 January 1974 vol 867 c383W
Mr. Meacher

asked the Chancellor of the Exchequer in what circumstances it is to a taxpayer's financial advantage to forgo family allowances ; and how many taxpayers have done so in each of the last five years.

Mr. Nott

The situation to which the hon. Gentleman refers will arise when the tax on the family allowance together with the amount recovered in the form of tax by the family allowance deduction ("clawback") exceeds the actual amount of family allowance payable. The point at which this will occur depends on personal circumstances. As a broad rule, however, it is now to a taxpayer's advantage to relinquish family allowance if his top rate of tax is 45 per cent. or more—50 per cent. if more than one family allowance is due.

The numbers of taxpayers who have relinquished family allowance are:

1968 1,245
1969 893
1970 788
1971 545
1972 531
1973 2,491

These figures are of known relinquishments and do not include those who did not claim family allowance when they were first entitled to do so.

Forward to