§ Mr. Pavittasked the Chancellor of the Exchequer if he will now review his statement that retirement pensioners with an annual income of less than £1,000 per annum will not be liable to income tax in the light of the evidence sent to him by the hon. Member for Willesden, West showing that tax deduction at the rate of 60p a week can in fact be levied six months before the ceiling is reached; and if the fact that the tax liability arises from the increase which will not be received until October means that in the event of death before that date the heirs of deceased can claim a refund.
§ Mr. NottThere is no necessity for my right hon. Friend to amend his statement. He has proposed that people over 65 will be exempt from income tax for 1973–74 if their total income for the full year does not exceed £1,000 in the case of a married couple or £700 in the case of a single person. Elderly people whose incomes exceed these limits may be liable to tax. At the beginning of the tax year the inspector makes an estimate on the available evidence of an elderly person's likely income for the year. If it seems probable that the income will be above the limit he arranges, where possible, for any tax due to be collected by deduction spread over the year. I explained these arrangements in detail in my recent written reply to my hon. Friend the Member for Luton (Mr. Simeons).—[Vol. 855, c. 157.]
If it turns out for any reason, including the death of the taxpayer, that actual income is lower than estimated, any repayment of tax necessary is made in the usual way.
I shall be writing to the hon. Member about the particular case he refers to.
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