§ Mr. RendelTo ask the Chancellor of the Exchequer how many people will be affected by the loss of the tax relief for maintenance payments; and what the average amount of the tax relief lost will be. [76843]
§ Dawn Primarolo[holding answer 15 March 1999]The latest available Survey of Personal Incomes (1996–97) shows around 300,000 taxpayers in receipt of income tax relief for maintenance payments. Of these, an estimated 20,000 will be eligible after 5 April 2000 for the maintenance relief for the 65s and over.
We estimate that the average amount of maintenance relief for 1999–2000 will be around £220.
As a result of the withdrawal of maintenance relief, approximately 10,000 people who receive maintenance under arrangements set up before 15 March 1988 will no longer be taxable on the payments they receive.