Vol. 519 No. 2
137 Mr. Hayes asked the Minister for Finance his views on the recent changes in the budget to increase the incapacitated child allowance from £800 to £1,600, and the decision to limit to £1,600 the total level of tax allowance that can be claimed in any given year; whether those families who have two or more children in this category in effect did not benefit from the recent tax changes in the budget; and if he will make a statement on the matter. [13289/00]
As the Deputy will be aware, it is my intention to complete the move to a system of tax credits by 6 April 2001. In order to accommodate this transition, a number of allowances which were available at the marginal rate of tax needed to be standard rated. The incapacitated child allowance was one such allowance. In budget 2000, I announced that the allowance would be doubled and standard rated, from £800 at the marginal rate to £1,600 at the standard rate. This ensured that there would be no loss to those taxpayers in receipt of the allowance who were paying tax at the higher rate and doubled the value of the allowance to those paying at the standard rate.
