Vol. 416 No. 2
76 Mr. Allen asked the Minister for Finance if he approves of the situation whereby individuals employed by their parents who are paying tax under the PAYE system are deprived of the personal allowance of £800; and if he proposes to make changes to this regulation in the Finance Bill.
The employee (PAYE) allowance was introduced to provide special relief for the ordinary PAYE worker. It was not extended to spouses or children working in the family firm, because they cannot be regarded as on a par with ordinary employees as regards such factors as securing the employment in the first instance, the conditions of employment, the likelihood of advancement and security of tenure. In addition, exclusion from the allowance was considered necessary in order to prevent the setting up of artificial employments solely in order to benefit from the allowance. I have no plans to change the present arrangements regarding the PAYE allowance for the category of person mentioned by the Deputy.
