§ Mrs. Jeger
asked the Secretary of State for Social Services what will be the financial effect on immigrant families with dependent children still overseas of the 601W changes in child tax allowances and the child income benefit.
§ Mr. Robert Sheldon
I have been asked to reply.
The levels of child tax allowances proposed for 1978–79, which were announced by my right hon. Friend on 26th October last, involve reductions, as compared with the levels ordinarily applicable in 1977–78, of £96 for the first qualifying child in the family, and £70 for each other qualifying child. Parents entitled to child tax allowance in respect of a child living outside the United Kingdom are entitled, subject to certain conditions specified in Section 25 of the Finance Act 1977, to claim, in 1977–78 only, an allowance at a special higher rate equivalent to the level of allowance in 1976–77. Where a parent is entitled to, and has claimed, this special allowance, for 1977–78, the proposed levels of allowances in 1978–79 involve a reduction of £200 for each child. The additional tax payable on account of the reduction of the allowance in 1978–79, assuming a basic rate of 34 per cent., will be £32.64 or £23.80 for first and subsequent children respectively where the ordinary levels of allowance have applied in 1977–78, and £68 where the special rate has applied.
Child benefit, like family allowance previously, is not normally payable in respect of children who are not resident in the United Kingdom.