HC Deb 03 July 2000 vol 353 cc96-7W
Mr. Matthew Taylor

To ask the Chancellor of the Exchequer how many taxpayers he estimates will receive less than the full amount of Children's Tax Credit due to having a taxable income less than the maximum amount of Children's Tax Credit in the next three years; and if he will make a statement. [128602]

Dawn Primarolo

The Children's Tax Credit (CTC) will benefit about 5 million families and will take out about half a million of them out of tax altogether. CTC is one of a range of measures to focus resources on families with children and reduce child poverty. We have also increased child benefit to record levels and have introduced the Working Families Tax Credit, which has already benefited over 1 million low income families.

Mr. Matthew Taylor

To ask the Chancellor of the Exchequer what estimate he has made of the number of taxpayers who will receive Children's Tax Credit at less than the full rate in the next three years; and if he will make a statement. [128603]

Dawn Primarolo

The Children's Tax Credit (CTC) will benefit about 5 million families. So that it is focused on low to middle income families, if there is higher rate taxpayer in the family, the credit (£442) is gradually withdrawn at the rate of £1 of credit for each £15 of income. CTC is one of a range of measures to focus resources on families with children and reduce child poverty. We have also increased child benefit to record levels and have introduced the Working Families Tax Credit, which has already benefited over 1 million low income families.

Mr. Matthew Taylor

To ask the Chancellor of the Exchequer what estimate he has made of the cost of administering the taper element to the Children's Tax Credit in the financial year 2000–01; and if he will make a statement. [128604]

£
1996–97 1997–98 1998–99 1999–2000
For those aged 65–74
Personal allowance 4,910 5,220 5,410 5,720
Married couple's allowance3 13,115 13,185 13,305 25,125
For those aged 75 and over
Personal allowance 5,090 5,400 5,600 5,980
Married couple's allowance4 13,155 13,225 13,345 25,195
Income limit 15,200 15,600 16,200 16,800
1Relief available at 15 per cent.
2Relief available at 10 per cent.
3This allowance is given if one of the spouses is aged 65–74 for the year in question.
4This allowance is given if one of the spouses is aged 75 or over for the year in question.

Note:

The age-related element of the personal allowance is reduced by £1 for every £2 of income over the income limit until the personal allowance for someone under 65 is reached. The age-related element of the married couple's allowance is reduced in the same way until the allowance for those aged under 65 is reached.