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Widows (Income Tax)

Volume 29: debated on Thursday 28 October 1982

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asked the Chancellor of the Exchequer if he will review the income tax arrangements for those widows who are in receipt of a pension but, on taking up gainful employment, are required to pay a greater proportion of income tax than they otherwise would.

The tax which a widow pays on her earnings has to reflect the fact that her pension, though paid without any deduction of tax, is part of her income; she pays no more tax than another person with the same overall income. However, if my hon. Friend has any suggestions for particular changes I shall be happy to consider them.