HL Deb 14 October 1997 vol 582 cc120-1WA
Lord Morris of Castle Morris

asked Her Majesty's Government:

What would be the revenue effects of taxing disability living allowance and attendance allowance (a) at the lower rate of income tax; (b) at the standard rate of income tax; and (c) at the higher rate of income tax.

Lord McIntosh of Haringey

Information for 1997–98 is given in the following table.

Maximum tax charge on benefit Yield in a full year from taxing benefit £m
Disability Living Allowance:
(a) lower rate (20 per cent.) 275
(b) basic rate (23 per cent.) 300
(c) higher rate (40 per cent.) 1300
Attendance Allowance:
(a) lower rate (20 per cent.) 230
(b) basic rate (23 per cent.) 240
(c) higher rate (40 per cent.) 1240
(1)The yield for each benefit from a maximum tax charge of 23 per cent, is approximately the same as from a maximum tax charge of 40 per cent. Although it is possible for an individual receiving benefit to be liable at the higher rate, detailed information on such individuals is not available.