§ Mr. Ovenden
asked the Chancellor of the Exchequer which national insurance short-term benefits are liable to tax; and what would be the cost of removing the tax liability.
§ Mr. Robert Sheldon
, pursuant to his reply [Official Report, 24th January 1978; Vol. 942, c. 536], gave the following answer
The only short-term benefit liable to tax is the widow's allowance. No precise 598W estimate can be made of the cost of removing the tax liability but it is likely to be less than £20 million in 1977–78, since the total of the benefits—including the earnings related supplement which is also taxable—will be about £67 million.