HC Deb 16 March 1971 vol 813 c291W
Mr. Barnett

asked the Chancellor of the Exchequer (1) what is his estimate of the amount of the total tax repayments for each of the years 1968–69, 1969–70 and 1970–71 arising from the recent decision in the High Court upholding a decision of the Kenilworth General Tax Commissioners on the question of tax payable on family allowances;

(2) what is his estimate of the number of taxpayers who will receive tax repayments arising from the recent High Court case decision on tax on family allowances;

(3) when he expects to make the tax repayments that arise from the recent High Court decision on tax on family allowances;

(4) what further action he proposes to take arising out of the recent High Court decision on tax on family allowances; and if he will make a statement.

Mr. Barber

I propose to include in the coming Finance Bill legislation to make it clear, as the then Government and Parliament manifestly intended, that the clawback reduction in tax allowances applies and has applied for past years in respect of each child who qualifies for family allowances. As the court recognised in the recent case, to construe the statutory provision so that a taxpayer with two children is not liable to "claw-back" in respect of his one family allowance while a taxpayer with more than two children suffers clawback in respect of all his family allowances is to produce an absurdity.

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