HC Deb 30 July 1981 vol 9 cc499-500W
Mr. Squire

asked the Chancellor of the Exchequer what would be the net cost per £1 of introducing (a) a taxable benefit for families including a child aged under 5 years assuming a system of mandatory independent taxation and (b) a tax-free benefit for families including a child aged under 5 years.

Mr. Peter Rees

At 1981–82 income levels the net cost of such benefits would be approximately:

  1. (a) 82p per £, assuming a system of mandatory independent taxation with non-transferable allowances and with the benefit paid to the wife and taxed as her income.
  2. (b) 88p per £, if tax-free.