Miss Rathboneasked the Chancellor of the Exchequer what would be the approximate loss to the Exchequer if the allowances promised by the Family Allowances Bill were to be made free of Income Tax, assuming the present personal allowance of £50 per child under Income Tax law remained unchanged; and what would be the loss if the allowance were to belong to the child but expendable by the parent on its behalf.
§ Sir J. AndersonIt is impossible to say how much revenue would be involved in exempting the child allowances that will be payable in the future under the Family Allowance Bill, for the amount depends on the rate of Income Tax in force when the allowances become payable, the graduation of the -Income Tax then in force, especially the personal allowances enjoyed by a married man, and the levels of income then obtaining. It will be appreciated that the personal allowances given for Income Tax.purposes to the family constitute, in effect, an exemption limit. Under the existing Income Tax law the married man with earned income and three children is exempt from Income Tax if his income does not exceed £323.