§ Mr. Norman Lamont
I have been asked to reply.
In the normal way there is no difference in the relative tax position of students who receive grants either from their parents or from local authorities. Local authority maintenance grants to students are not liable to tax; nor are ordinary (non-covenanted) parental contributions to students' maintenance.
If the parent makes his contribution in the form of payments under a deed of covenant, the tax position is different for both the parent and the student. The parent normally obtains tax relief for the payments by deducting basic rate tax from them. The payments form part of the student's taxable income, and by setting his personal allowances against them he may be entitled to repayment of the tax deducted at source.744W
home entrants aged 21 to 24 expressed as a percentage of those in the relevant age group who obtained one or more A-levels at age 18 but did not then enter HE.
3 The older mature participation index is defined as the number of initial home entrants aged 25 or more expressed as a percentage of the population aged 25 to 34.