Marriage is good for Britain - and that's
why I'm backing it with a tax break, says UK Prime Minister, DAVID CAMERON.
Under the new law;
- Stay-at-home mothers and women who work part time will be main winners
- Husband or wife will be allowed to transfer £1,000 of their tax-free allowance to spouse
- Tax break will be enjoyed by gay couples in civil partnerships and in marriage
See details below:
Millions of married couples are to receive
a tax break to recognise their ‘commitment and responsibility’, David Cameron
reveals today.
In an article for the Daily Mail, the
Prime Minister says a £1,000 transferable tax allowance will be introduced in
2015.
Stay-at-home mothers and women who work
part time will be the main winners. ‘The values of marriage are give and take,
support and sacrifice – values that we need more of,’ Mr Cameron writes.
‘Marriage is a good thing for our
country – it’s the ultimate form of commitment under the law – and we want to
show our support for it.’
The move, first promised by the Prime
Minister when he ran for the Tory leadership in 2005, restores the financial
recognition for marriage lost when a similar allowance was phased out in 1999.
Under Mr Cameron’s plans, which he will
champion at his party conference next week, a husband or wife will be allowed
to transfer £1,000 of their tax-free personal allowance to their spouse.
The Tory 2010 election manifesto
promised a figure of only £750.
It will apply to those not using all of
their personal allowance – either because they are at home looking after
children, or work part time and earn less than £10,000. Around eight million
people are expected to benefit – by around £200 a year.
The tax break will be available to gay
couples in civil partnerships and – following a change in the law – in
marriages.
The Liberal Democrats, who object to any special recognition for marriage, will abstain in a vote on the issue, a provision included in the 2010 coalition agreement.
But even if, as expected, Labour
opposes the measure it should pass thanks to the votes of Conservative MPs.
It will be confirmed in Chancellor
George Osborne’s autumn statement and introduced from April 2015 – making it a
key issue at the general election a few weeks later.
The tax break will not be available to couples that have a higher rate taxpayer which, in 2015, will be those earning more than £42,285.
Mr Cameron’s decision to press ahead
will delight most Conservative MPs and polls suggest the move is supported by
around two thirds of voters.
The Tories argue that, for 11 years,
Labour undermined marriage and financially punished couples where one spouse
chooses to stay at home to bring up a family.
The US, Canada, France, Germany,
Denmark and Norway are among nations that reward the caring role of
stay-at-home spouses. However, the tax measure, expected to cost around
£600million a year, will provoke controversy at a time of austerity.
It had been put on hold because of the
efforts to rein in state spending, and the priority given to the Coalition’s
goal of increasing the personal tax allowance for 24million basic rate
taxpayers to £10,000 a year.
But Right-wing Tories, including
several members of the Cabinet, indicated they wanted action quickly.
The measure may help placate social
conservatives uneasy at the Government’s focus on introducing gay marriage, as
well as the removal of child benefit from high earners.
Mr Osborne has also promised childcare
tax breaks after 2015 to help working women – leading Right-wing Tories to
insist it is right for the Government to show support for stay-at-home mothers
as well.
Tim Loughton, a Tory former minister
who campaigned for the tax break, said: ‘The Government is sending out a very
strong signal that marriage and the commitment it demonstrates is good for
families, children and society, both socially and financially, and we should
not be afraid to stand up for it.’
Deputy Prime Minister Nick Clegg has
branded the idea ‘odd’, while Lib Dem Business Secretary Vince Cable has
complained widows and those abandoned by their partners will be excluded.
Work and Pensions Secretary Iain Duncan Smith, who has driven the party’s policy on backing for marriage, initially proposed a larger tax break costing £3.2billion a year.
But he agreed there should be a
staggered introduction of tax allowances because of the catastrophic state of
the public finances. In 1999, its final year before it was abolished for all
but pensioner couples, the married couples allowance was worth £197 a year.
Marriage is already recognised in both
inheritance tax and capital gains tax.
For more than 20 years, the Daily Mail
has led calls for marriage to be recognised in the tax system once more.
Marriage is good for Britain - and that's
why I'm backing it with a tax break, says DAVID CAMERON
Alongside the birth of my children, my
wedding was the happiest day of my life. Since then, Samantha and I have been a
team. Nothing I’ve done since – becoming a Member of Parliament, leader of my
party or Prime Minister – would have been possible without her.
There is something special about
marriage: it’s a declaration of commitment, responsibility and stability that
helps to bind families. The values of marriage are give and take, support and
sacrifice – values that we need more of in this country.
Of course, governments can’t be in the
business of social engineering – there is nothing more scary than the prospect
of a politician trying to do so.
And naturally, there are people across
the country who have never married and are just as committed to each
other.
We also know that sadly too many marriages come to an end. But surely we can agree with all these things, yet at the same time support something which we know can help keep families together.
There is good evidence about the
positive role that marriage can play: study upon study has shown that
families with married couples are less likely to break up.
There are also many studies about the
cost of family breakdown. I am not for one minute arguing that marriage is a
panacea, of course it isn’t.
But the real question is this: because
marriage is an institution that helps to build a strong society, shouldn’t
society properly recognise that in the tax system? Other countries do – I think
we should too.
That’s why when I ran for the
leadership of my party back in 2005, I said that I wanted to do more for
marriage in the tax system: a personal pledge that I made right at the start of
my campaign – and I then backed that up with a pledge in our manifesto at the
last election.
So next week at the Conservative Party’s
conference in Manchester, I’m going to deliver on the promise I made.
From April 2015, if neither of you are
higher rate taxpayers, you will be able to transfer £1,000 of your tax-free
allowance to your spouse.
In effect, if you pay the basic rate of
tax and your partner doesn’t use all of their personal allowance, you’ll be
able to have some of it. Most couples who benefit will be £200 a year better
off as a result.
And of course this will be true
if you’re gay or straight – and in a civil partnership or a marriage.
This summer I was proud to make equal marriage the law. Love is love,
commitment is commitment.
I’m really proud that we’re getting this done. But when you make an important change like this, I know that people will have questions.
What’s more, whenever you talk about
the family as a politician, it’s all too easy for your opponents to twist your
meaning.
Labour won’t miss a trick: they will
spend the next week peddling false and inaccurate myths rather than having a
sensible debate.
So let’s address a few of the myths
that are likely are to spring up. This is not about stigmatising unmarried
people or single parents: as I’ve already said, you don’t have to
be married to have a family life that is rock solid – and we support all
families through the tax and benefits system.
All we’re saying is that marriage is a
good thing for our country – it’s the ultimate form of commitment under the law
– and we want to show our support for it.
Next, the charge will come up
that we’re trying to bribe people to get married. Frankly this is a
pretty depressing – and wrong-headed – view of human nature. People aren’t
going to choose to get married for a few extra pounds each week. This
policy isn’t about the money but about the message that people who
make a lasting commitment should be recognised in some way.
Finally, Labour will say we’re
favouring some families over others. But I’m happy to defend our record any day
of the week.
From tax-free childcare for every
working family to an income tax cut for 25million people – from cutting
fuel duty to freezing council tax – we’re doing something for all
families even in these difficult times.
Compare this to the promises that
Labour made to you last week – promises that fell apart within a matter of
hours.
From tomorrow the Conservative Party
will be gathering in Manchester. Together we’ll be speaking to the nation
with a clear message – we are backing hard-working people in this country
every step of the way. Whether you’re young and hungry for your first job or a
family tired of renting and looking to own your first home, then the
Conservative Party will help you achieve your dreams.
Supporting marriage is part of that
vision for Britain, recognising an institution that is all about commitment.
I’m proud that we’re finally making
this happen – and proud that we’re delivering on the promise I made.
Courtesy of: DailyMail Uk
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