§ Mr. WhittingdaleTo ask the Chancellor of the Exchequer (1) how many people will cease to receive tax relief on maintenance payments at(a) 10 per cent. and (b) 40 per cent. as a result of the change contained in the Finance Bill; [81586]
(2) how much revenue will be raised in 2000–01 as a result of the removal of tax relief for maintenance payments. [81588]
§ Dawn Primarolo[holding answer 20 April 1999]: There will be around 350,000 people who will cease to receive relief on maintenance payments in 2000–01 as a result of the 1999 Budget proposals, of which some 310,000 will cease to receive relief at 10 per cent., 20,000 will lose relief at basic rate and 20,000 at higher rate.
617WThere will be around £65 million raised for 2000–01 as a result of the removal of tax relief for maintenance payments. However, a new children's tax credit for families with children is being introduced in 2001–02. These reforms will modernise the personal tax system by getting rid of outdated allowances and bringing in a new relief which will concentrate resources where they are most needed—on families bringing up children.