§ Mr. Meacher
asked the Chancellor of the Exchequer in what circumstances it is to a taxpayer's financial advantage to forgo family allowances ; and how many taxpayers have done so in each of the last five years.
§ Mr. Nott
The situation to which the hon. Gentleman refers will arise when the tax on the family allowance together with the amount recovered in the form of tax by the family allowance deduction ("clawback") exceeds the actual amount of family allowance payable. The point at which this will occur depends on personal circumstances. As a broad rule, however, it is now to a taxpayer's advantage to relinquish family allowance if his top rate of tax is 45 per cent. or more—50 per cent. if more than one family allowance is due.
The numbers of taxpayers who have relinquished family allowance are:
Numbers 1968 1,245 1969 893 1970 788 1971 545 1972 531 1973 2,491
These figures are of known relinquishments and do not include those who did not claim family allowance when they were first entitled to do so.