asked the Minister for Finance (a) the number of income tax payers at present having a tax-free allowance of £120 per annum in respect of a child over the age of sixteen who is undergoing training for a trade, profession or vocation, (b) the total estimated loss to the revenue in tax through the operation of this allowance in each of the years 1963-64 and 1964-65, (c) what estimated loss to the revenue would result from a waiver of the present condition whereby this allowance is denied in respect of a child having an income of his own of more than £80 per annum, and (d) the number of taxpayers who are at present denied the allowance for this reason.
Ceisteanna—Questions. Oral Answers. - Income Tax Child Allowance.
8.
Separate figures are not available of the number of persons claiming child allowance in respect of a child over the age of 16 who is undergoing whole-time training for a trade, profession or vocation. It is likely, however, that the cost of this relief is not substantial.
Parts (c) and (d) of the Deputy's question appear to be based on a misapprehension. Under section 11 of the Finance Act, 1963, child allowance does not cease where the child's income exceeds £80. That section introduced, with effect as from the current year, a "tapering" relief under which a reduced allowance may be granted where the child's income exceeds £80 but is less than £200. The reduced allowance is £120 less the amount by which the child's income exceeds £80.