§ Mr. Roderickasked the Chancellor of the Exchequer whether he will review the present income limits for remission of arrears of tax which have arisen through official error.
§ Dr. GilbertYes. The practice adopted by the Inland Revenue of remitting arrears of tax which have arisen through official error is set out in the White Paper of July 1971 (Cmnd. 4729). Where the taxpayer's gross income is less than £1,500 a year no attempt is made to recover the arrears of tax. Where it is above this but less than £3,000, only one-half of the arrear is collected unless there is investment income of £250 or more when the whole of the arrear is normally collected. My right hon. Friend has decided that these limits should be raised to £2,000, £4,000 and £325, respectively. These new limits will apply to any case of official error where the Inland Revenue's view as to the application of the provisions of the White Paper is conveyed to the taxpayer or his agent on or after today.