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Loss of Income Tax via allowances

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10

WQ. 37/2018

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY THE DEPUTY OF ST. JOHN

ANSWER TO BE TABLED ON TUESDAY 20th FEBRUARY 2018

Question

Will the Minister provide the most recent figures for the loss of Income Tax arising from all of the childcare allowances offered through the Income Tax system and will he also provide the number of people who are currently claiming these allowances?

Answer

This answer refers to Taxes Office data for the 2016 year of assessment.

 

Childcare allowances

Tax relief[1]

Child allowances

£17m

Additional personal allowance

£4m

Child Care Tax Relief

£3m

TOTAL

£24m

 

There were about 14,000 claimants. NOTE:

  1. Child allowances' includes basic (pre-school and school age children) and higher (children in full time higher education). These allowances are set at a flat rate.
  2. Basic child allowance and additional personal allowance were phased out for standard rate taxpayers through 2016 and 2017.
  3. Childcare Tax Relief, is a tax relief which can be claimed by working parents who incur specific costs for pre-school and school age children under 12.
  4. The claimants are a mixture of marginal and standard rate taxpayers, but also those whose access to reliefs and allowances ultimately exempt them from income tax. In these cases the tax relief available may not have been fully utilised.