§ Mr. Stevensasked the Chancellor of the Exchequer what would be the current estimated effect on the Revenue of permitting husband and wife to be treated as separate persons for tax purposes on the basis that the aggregate of their joint incomes is deemed to be equally divided between them; and what would be the current estimated effect on the Revenue of the adoption of the quotient system as used in the French tax code.
§ Mr. PowellThe estimated loss in Income Tax and Surtax through treating husband and wife as two separate persons each with one half of the joint income would he about £185 million, while the cost of adopting the quotient system would be about £170 million. This assumes that the wife's earned income relief and reduced rate reliefs on her earned income would be withdrawn.