Taxation

HC Deb 28 January 1998 vol 305 cc265-6W

Mrs. Lait

To ask the Chancellor of the Exchequer how many married couples would pay higher-rate tax if independent married women's tax was withdrawn and they were taxed jointly. [24957]

Dawn Primarolo

This would depend on what assumptions were made about the operation of joint taxation.

Mrs. Lait

To ask the Chancellor of the Exchequer what receipts would be generated by(a) taxing child benefit at the basic rate, (b) taxing child benefit at the higher rate and (c) means-testing maternity benefits. [25007]

Dawn Primarolo

Information on the taxation of child benefit for 1998–99 is given in the table.

	Yield in a full rear (£ million)
Child benefit taxed as:
Father's or lone mother's income at
(a) basic rate1	1,200
(b) higher rate2	1,400
Mother's or lone father's income at
(a) basic rate1	675
(b) higher rate2	700
1 Benefit taxed at 20 per cent for taxpayers only paying lower rate of tax and at 23 per cent. for all other taxpayers.
2 Benefit taxed at taxpayer's marginal rate.

The effect of means testing Statutory Maternity Pay and other maternity benefits would depend on the precise system of means testing. Statutory Maternity Pay is liable to tax in the same way as other earnings.

Mrs. Lait

To ask the Chancellor of the Exchequer if the Inland Revenue classifies child benefit as a tax relief paid in cash. [24958]

Mr. Darling

Child Benefit is classified in the national accounts as General Government Expenditure.

Mrs. Lait

To ask the Chancellor of the Exchequer what is the estimated amount of tax forgone by the Treasury since the introduction of independent married women's taxation. [24955]

Dawn Primarolo

I regret that such an analysis could be provided only at disproportionate cost.