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Covenants

Volume 78: debated on Wednesday 1 May 1985

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asked the Chancellor of the Exchequer if, with a view to reducing the amount of paperwork involved and the work load of Inland Revenue staff, he will take steps to simplify the processes involved in the covenant procedure; and if he will make a statement.

[pursuant to his reply, 30 April 1985, c. 95]: The repayment procedures must include checks that the claimant is in fact entitled to repayment and that tax has been deducted by the payer. In the case of covenants made by parents in favour of their adult student children, however, the Inland Revenue is intending to introduce, from the start of the academic year 1985–86, simplified procedures which meet these basic requirements. These will include forms to make it easier for parents to make out valid deeds, and a new repayment claim form introduced which is tailored to the needs of students. In addition, the Inland Revenue is preparing a package for students which will include leaflets explaining the effect of a deed of covenant on their tax, together with copies of all the necessary forms.