§ Lord Monson
asked Her Majesty's Government:
How much revenue would be raised if child benefit were deemed to be paid net of tax at 30 per cent. so that parents with incomes in excess of approximately £18,000 per annum became liable for higher rate tax on the grossed-up amount if they claimed the benefit.
The Chancellor of the Duchy of Lancaster and Minister for the Arts (The Earl of Gowrie)
The yield of income tax from parents liable at rates above the basic rate would be about £65 million in a full year at 1984–85 levels. This assumes that the wife's earned income allowance could not be set against the benefit and that basic rate tax on the benefit would not be repaid to parents with incomes below the income tax threshold.