HC Deb 24 October 1972 vol 843 cc217-8W
Mr. Bishop

asked the Chancellor of the Exchequer if he is aware that it is the practice of the Inland Revenue to refer to taxation matters concerning married women, and particularly those in full-time employment and who are taxed as single persons under the Pay As You Earn coding, as being contained within their husband's files; and if he will review the position so that wives can have their own identity for tax purposes and be able to claim tax relief in their own right.

Mr. Nott

The general rule is that the income of a married woman is deemed to be that of her husband for tax purposes. Consequently, the title to income tax allowances and reliefs belongs primarily to the husband, and records relating to those allowances would normally be recorded in the husband's file. A husband and wife may, however, jointly elect that the wife should be taxed as a single person in respect of her earnings. Moreover, it is open to either husband or wife to claim to be separately assessed from the other. This latter election—which does not affect the total tax payable on the joint income—allows each to handle his or her own affairs independently.

Mr. Bishop

asked the Chancellor of the Exchequer if he is aware that the tax relief due on a policy held by a married woman can be claimed by her husband and is not payable by the Inland Revenue to her, even though she may be in full-time employment and taxed as a single person for Pay As You Earn and though the policy is in her name and paid for from her own salary; and if he will cease to make it a requirement that she can claim the relief due providing her husband has no objection, and take steps to pay any such relief direct to the policy holder.

Mr. Nott

The fact that normally relief for life assurance premiums paid by a wife can only be allowed to her if the husband does not object follows from the general rule that the income of a married woman is deemed to be that of her husband for tax purposes. If, however, there has been an election either for the wife to be taxed as a single person on her earnings or for the couple to be separately assessed the wife is given relief for qualifying life assurance premiums she pays.