§ Mr. Austin Mitchell
To ask the Chancellor of the Exchequer, further to paragraph 3.18 of Cmnd. 9756 how his proposals for separate taxation for husbands and wives will affect families where the wife wishes to remain at home to care for young children; and if he will publish in theOfficial Report figures for his revised proposals corresponding to those in chart 3.1 of Cmnd. 9756.
§ Mr. Norman Lamont
Under independent taxation, husband and wife will each be entitled to a personal allowance which can be set against any kind of income. The husband will also get the married couple's allowance. The personal allowance and married couple's allowance added together are equal to the present married man's allowance.
On the change to independent taxation, the total amount of income tax allowances used by married couples of working age will rise by about £2½ billion at 1988–89 levels of income and allowances. This figure takes no account of possible behavioural changes. The total amount of allowances used by single people will, of course, remain unchanged.
Estimates of the percentage of income tax allowances used by taxpayers of working age, by family type, are as follows:
Present system per cent. Independent taxation per cent. Single 30 29 Married, wife not earning 22 23 Married, wife earning 48 48