§ Mr. Trotter
asked the Chancellor of the Exchequer when the limit of £115 of a 496W child's income to be disregarded in determining the parent's entitlement to child allowance for income tax purposes was fixed; what would be the equivalent figure today allowing for the fall in the value of the pound; what would be the cost to the Exchequer of increasing the limit to that figure; and whether he will do so.
§ Mr. Robert Sheldon,
pursuant to his reply [Official Report, 19th January 1976; Vol. 903, cc. 356–7], gave the following information:
The existing child's income limit of £115 was introduced in 1963–64. On the basis of the increase since then in the retail price index the equivalent figure at 1975–76 prices would be about £295. The cost of increasing the limit to that figure would depend, in part, on the extent to which children were given income up to that amount under trusts, deeds of covenant, etc; but it is estimated to be between £10 million and £15 million. As regards the last part of the Question, I refer the hon. Member to what I said on the subject during the debates on the Finance (No. 2) Bill on 10th June 1975.—[Vol. 893, cc. 310–313.]