asked the Minister for Finance if he will give an estimate of the cost to the Exchequer of raising the working wife's weekly tax-free allowance from its present level to give her £2 10s, £3 10s, £4 10s and £5 10s respectively tax-free weekly.
Ceisteanna—Questions. Oral Answers. - Tax-Free Allowance.
19.
Presumably the Deputy has in mind the additional personal allowance granted in respect of a wife's earnings (over and above the ordinary earned income relief that may be available). The full year cost to the Exchequer of increasing this additional allowance so as to raise the weekly tax-free allowances in respect of a wife's earnings to £2 10s, £3 10s, £4 10s, and £5 10s is estimated to be £1.2 million, £1.9 million, £2.5 million and £2.9 million respectively.
I should like to explain that where the combined incomes of husband and wife do not exceed £2,000 the wife's earnings qualify for the normal earned income relief of one-fourth in the same way as the husband's earnings.
The tax-free allowance of a married woman claiming no relief other than the wife's earned income relief (together with earned income relief) is at present £60.
The figure of £60 is arrived at by adding to the wife's earned income relief of £45 the sum of £15 (i.e. one-third of £45) to take account of earned income relief (£45 + £15 = £60).