§ Mr. Ralph Howell
asked the Chancellor of the Exchequer what is the annual tax liability of a married couple with two children earning £80 a week and assuming that only the personal tax allowances apply; and what would be the tax liability assuming tax rates and thresholds as in France.
§ Mr. Robert Sheldon
Assuming that both children are under 11 years of age, the annual tax liability under the Budget proposals 1978–79 for a married couple with two children earning £80 a week is as follows:
- i. Husband only earning—£757.
- ii. Wife earning at least £1,675 per annum (£32 a week if earned in the whole year)—£360.
If tax rates and allowances as in France were applied, on the basis of existing parities, a married couple with two children earning £80 per week would have no tax liability whether the wife is earning or not.