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Caveat Mortgagor

Married Couples 'to Get Tax Break By 2015'

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http://www.bbc.co.uk/news/uk-politics-11478320

Married couples 'to get tax break by 2015'

The Conservatives have long favoured recognising marriage in the tax system

The government plans to introduce a tax break for married couples before the 2015 election, the BBC understands.

The news comes after criticism of the chancellor's plan to axe child benefit for higher rate taxpayers from 2013.

There were concerns it would penalise families where one parent stayed home to look after children - but their partner paid the 40% tax rate.

Treasury sources denied any changes on tax breaks had been made in reaction to the backlash to the child benefit cuts.

Chancellor George Osborne announced on Monday that from 2013 child benefit would be removed from families with at least one parent earning more than about £44,000 a year.

But critics said it would be unfair, because families with two earners paid just under the threshold each, would still be eligible while those where only one parent works would be hit.

The Daily Mirror described it as a "war on families" while the Daily Telegraph said "stay-at-home mothers" would be hit.

Among Conservative MPs to raise concerns was the former shadow home secretary David Davis, who said it was "an accidental piece of social policy" as it would "encourage wives or mothers to go out to work"

Backbencher Penny Mordaunt said it had been "poorly presented" and, while she supported the principles, she was concerned about the impact on married couples.

'Transferable allowance'

Prime Minister David Cameron said earlier it was fair to ask the better-off to help tackle the deficit and it was too complex and expensive to work out overall household incomes to administer the benefit.

But he told the BBC: "If you look for instance at the issue of the stay-at-home mother, in the coalition agreement [with the Liberal Democrats] we do talk about having some sort of transferable tax allowance to help couples in that way.

"So obviously there are things we'll try and do to make sure that all of what we do, if you look across the piece dealing with the deficit, is fair."

BBC political editor Nick Robinson said government sources had told him there would be a tax break for married couples introduced in this Parliament.

Although Conservative policy was to limit the tax break to basic-rate tax payers, he said that had not been repeated in the coalition agreement between the Tories and the Lib Dems - adding that Chancellor George Osborne might seek to partially compensate stay-at-home parents aggrieved by the child benefit cut.

Treasury sources denied there had been any change in the married tax breaks policy in reaction to the backlash against the child benefit proposal.

In April the Conservatives outlined their plans to give four million married couples and civil partners an annual £150 tax break. It would have applied to basic rate taxpayers earning under £44,000 where one partner did not use their full personal tax-free income allowance.

They would have been allowed to transfer £750 of their tax-free personal allowance to their working partner.

Manifesto commitment

But the idea was opposed by the Liberal Democrats. In the coalition agreement drawn up between the two parties, it said: "We will also ensure that provision is made for Liberal Democrat MPs to abstain on budget resolutions to introduce transferable tax allowances for married couples without prejudice to the coalition agreement."

Health Secretary Andrew Lansley told the BBC it had been made clear in the coalition agreement that they would look at offering additional support for marriage in the tax system.

But he added: "Tax matters are a matter for the chancellor of the exchequer and unless and until the chancellor of the exchequer tells us what tax measures he is proposing, I don't think you know or I know what the answer would be."

Back bencher Richard Ottoway said married tax breaks had been a Conservative manifesto pledge adding: "This is just delivering on our manifesto. It is quite natural it should be coming forward sometime in the lifetime of this parliament."

Edited by Caveat Mortgagor

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In April the Conservatives outlined their plans to give four million married couples and civil partners an annual £150 tax break. It would have applied to basic rate taxpayers earning under £44,000 where one partner did not use their full personal tax-free income allowance.

They would have been allowed to transfer £750 of their tax-free personal allowance to their working partner.

Is that all? That's it!!??

So they rip a good few thousand £ off you with the old child benefit in one hand, and give you back a few hundred quid in the other.

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They are u-turning and back-tracking now that people are pointing out that a couple who earn 43K a year each will still get child benefit but a single parent earning 44K will now lose it.

What always amazes me about this stuff - like Brown and his gaffe with 10% tax rate - don't they have civil servants to check for these anomalies?

How hard would it be to set up 80-10 spreadsheet models with various different household compositions and find out where the big losers are going to be... BEFORE you announce it via the DM or Sky News?

Amateurs. Plain and simple.

Edited by What's'isname

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They are u-turning and back-tracking now that people are pointing out that a couple who earn 43K a year each will still get child benefit but a single parent earning 44K will now lose it.

They might but I don't think so. They were talking about this marriage stuff pre-election.

Either way, I think they'd be better off just announcing all of the benefit changes and tax details together. Otherwise it looks bad.

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Is that all? That's it!!??

So they rip a good few thousand £ off you with the old child benefit in one hand, and give you back a few hundred quid in the other.

They're not going to plug the deficit by giving more than they take though are they?

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What always amazes me about this stuff - like Brown and his gaffe with 10% tax rate - don't they have civil servants to check for this stuff?

How hard would it be to set up 80-10 spreadsheet models with various different household compositions and find out where the big losers are going to be... BEFORE you announce it via the DM or Sky News?

Amateurs. Plain and simple.

I was reminded of the whole 10% fiasco when I heard this..

I'm guessing that they don't want leaks.

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They're not going to plug the deficit by giving more than they take though are they?

True. But they could make a start by reducing the net amount a family can get on benefits to something like £250 a week, rather than the mooted £500.

And whether you agree with child benefit or not, not capping it on combined income is hardly fair either. Everthing about this coalition government and recent benefit reforms has all been ar$e about face if you ask me. mad.gif

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I'm guessing that they don't want leaks.

The problem is that Osborne is a "political" chancellor, just like Brown was

The economics is secondary for these two

This was meant to be another political zinger, trapping Labour, like the IHT scrappage plan in 2007

It's just that this one blew up in his face almost immdiately, rather than a couple of years later

Edited by oldsport

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Is that all? That's it!!??

So they rip a good few thousand £ off you with the old child benefit in one hand, and give you back a few hundred quid in the other.

Thought they might have spread the tax free allowance or something worthwhile, really poor if they are thinking about having it at that sort of level.

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George Osborne's turning into Gordon Brown

They are all alike--they think their actions can control the market. Osborne and Brown are like puppets that dance to their Bankster masters. Something Don Corleone reocgnised early on in his career.

As for the marriage tax--health warnings should be given along with the promise about not holding your breath.

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Best thing would be to pool the personal allowances of ALL the household members - all the kids, granny and the lodger and then base your tax on that.

Sure, would have some difficulties associated with it, but surely no more than the horribly complicated tax credit/child benefit/etc etc cashback things, and would be fundamentally fair.

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Is that all? That's it!!??

So they rip a good few thousand £ off you with the old child benefit in one hand, and give you back a few hundred quid in the other.

Yep, all those married couples earning £43K a piece, and all those high income married pensioners get it too :rolleyes:

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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