HL Deb 26 January 1998 vol 585 cc5-6WA
Lord Hayhoe

asked Her Majesty's Government:

What is the estimated annual yield of income tax if child benefit payments to mothers are taxed:

  1. (a) at the standard rate; and
  2. (b) only, where appropriate, at the higher rate of 40 per cent. [HL137]

Lord McIntosh of Haringey

If child benefit were taxed as part of the mother's or lone father's income at the marginal income tax rate, the yield for 1998–99 would be about £700 million. If the benefit were taxed as part of the income of those mothers or lone fathers who were liable to tax at the higher rate of 40 per cent., the yield for 1998–99 would be about £40 million.