Trevor Sargent
Question:34 Mr. Sargent asked the Minister for Finance the plans, if any, he has to make tax credits refundable; and if he will make a statement on the matter. [13834/99]
Written Answers. - Tax Credits.
Paul Bradford
Question:39 Mr. Bradford asked the Minister for Finance the plans, if any, he has for the full introduction of tax credits; if he will put allowances other than general personal allowances on a tax credit basis; and if he will make a statement on the matter. [13828/99]
I propose to take Questions Nos. 34 and 39 together.
In the 1999 budget last December, I announced the standard rating of the basic personal and PAYE allowances as the first step in a move to a full tax credit system, and this was given effect in the 1999 Finance Act. I also announced my intention to complete the changeover to tax credits in future budgets. That remains the position. I would propose that the remaining non-standard rated allowances should be converted to tax credits as part of this process. However, there will be a number of issues to consider in this regard, and my Department will be examining these issues in conjunction with other interested parties. My priority is to complete the move to tax credits. There are no plans at this stage to introduce refundable tax credits.