§ Mr. Burke69, 70 and 71. asked the Chancellor of the Exchequer (1) how the principle of assessing a married woman's earned income separately from her husband's earnings is affected by his regulations in respect of the fiscal year in which she ceases to be employed; and whether the concession is then withdrawn with the effect that her earnings for that year are assessed with her husband's earnings;
(2) if he is aware that a married woman who ceases to be employed during the fiscal year and applies for a rebate of Income Tax payments has her earned income for that year assessed jointly with 118W her husband's income thereby losing the benefit of separate assessment; and if he will take steps to remedy this hardship;
(3) why a married woman who leaves employment in the course of the fiscal year is not entitled to an adjustment of her Income Tax payments unless she makes a claim for adjustment before the end of the fiscal year in which she has ceased to be employed.
§ Mr. GaitskellThe normal rule is that the income of a married woman living with her husband is treated as income of the husband for Income Tax purposes. But either husband or wife, by making a claim before 6th July in the year of assessment, may have the two incomes assessed separately. The allowances to which both parties are entitled are then divided between them in proportion to their respective incomes. A claim to separate assessment continues to have effect until revoked, and is not affected by the nature of the wife's income or if she is in employment, by her ceasing to be employed. I am not clear exactly what type of case my hon. Friend has in mind, but if he will send me particulars I shall be glad to look into the matter.