§ Mr. Peter Bottomley
asked the Chancellor of the Exchequer what is his estimate of the number of families with dependent children who, as a result of the reduction in child tax allowances which has already taken place, and of the proposed further reduction, will be liable to tax at a higher marginal rate than would otherwise have been the case.
§ Mr. Robert Sheldon
Taking account of the Budget proposals, the numbers of taxpayers who in 1978–79 pay tax at a higher marginal rate than they would if child tax allowances had remained at the level of 1976–77, the year before the start of the phasing-in of child benefit, are:
Thousands Numbers paying at the lower rate rather than having no liability 170 Numbers paying at the basic rate rate rather than the lower rate 260 Numbers paying at the higher rate of 40 per cent. rather than the basic rate 40 Others paying at higher rates 80 550
Married women are counted separately in the numbers paying at lower and basic rates.
Corresponding numbers in 1979–80 will depend on the levels of incomes and personal allowances in that year.