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Civil List

Volume 982: debated on Monday 31 March 1980

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asked the Chancellor of the Exchequer what considerations he took into account regarding the recent Civil List increases; what proportion of the increase will go to employees; and whether he will introduce legislation to ensure that all recipients are subject to income tax.

The recentlyannounced increase in payments to members of the Royal Family under the Civil List Acts are consistent with figures for cash limits on central government expenditure generally. The additional provision for 1979 made in a Winter Supplementary Estimate was entirely for approved pay increases for employees. Provision for staff pay increases from 1 April 1980 is made in the central pay Vote (Class XIII, Vote 31); notwithstanding this, because of the staging of earlier pay increases including the final stage increase payable from 1 January 1980, 57 per cent. of the increase between the calendar year 1980 and the calendar year 1979 represents additional pay of employees.All the recipients of payments under the Civil List Acts, except Her Majesty The Queen, are liable to assessment to income tax. Where payments from the Civil List are expended, wholly, exclusively and necessarily by members of the Royal Family in the performance of their duties, relief from payment of income tax may be given under the provisions of section 191 of the Income and Corporation Taxes Act 1970 as amended by articles 4(1) of the Minister for the Civil Service Order 1971. I have no plans to introduce legislation to change these arrangements.