§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate for the current tax year and for 1975–76 the revenue forgone by the option of husband and wife to be taxed separately, and the percentage of this which is at higher rates of tax.
§ Mr. Robert SheldonI assume that the hon. Member is referring to the election for the separate taxation of a wife's earnings rather than to the election for separate assessment. On the assumption that this election is taken whenever it is beneficial, the estimated cost for 1975–76 is 47W about £50 million. For 1976–77, on the basis of the conditional and unconditional proposals in the Budget, the cost is expected to be about £60 million. All of this represents tax which would otherwise be paid at higher rates.