§ Mr. WebbTo ask the Chancellor of the Exchequer what would be the tax yield from making child benefit taxable for(a) mothers who are higher-rate tax payers and (b) fathers who are higher-rate tax payers; and what would be the administrative cost of doing so. [44626]
§ Dawn Primarolo[holding answer 8 June 1998]If child benefit were taxed as part of the income of those mothers or lone fathers liable to tax at the higher rate of 40 per cent., the yield for 1998–99 would be about £40 million. If the benefit were taxed as part of the income of fathers and lone mothers liable to tax at the higher rate of 40 per cent., the yield for 1998–99 would be about £450 million. The administrative costs would depend on the precise way in which any tax charge was imposed.