Mr Loughton has tabled an amendment to the Finance Bill to enshrine in law transferable tax allowances for married couples, to come into effect in 2015.
Transferable tax allowances available to all married couples or those in civil partnerships with at least one child below the age of five, were proposed by the Conservatives in 2010.
However, Mr Loughton says that more than three years on from the party’s manifesto commitment to bring in a transferable tax allowance, it appears no nearer and the patience of many hardworking home-based parents is being severely stretched.
He added, 'Time is running out to make good on our very clear commitment and the Report Stage of the Finance Bill presents one of the last opportunities to put this important measure on the statute book before the next election.'
Under plans previously backed by the Prime Minister David Cameron, one stay-at-home member of an eligible couple would be able to transfer £750 of their tax-free personal allowance to their working partner, reducing their tax bill. The move is thought to worth around £150 a year to basic rate taxpayers.
Tim Loughton, MP for East Worthing and Shoreham, said, ‘There are many hardworking married families or in civil partnerships where one of the parents is working hard at bringing up children in the home. Yet almost uniquely amongst Western economies they receive no recognition in the tax system and many have been big losers from changes to child benefits and other allowances.’
‘Given the recent welcome announcement for helping families with soaring childcare costs, it is vital that we do not discriminate against those parents who often sacrifice their own careers for the good of their children.’
Campaign group Mothers at Home Matter has welcomed the move to introduce transferrable allowances for married couples.
Campaigner Laura Perrins, a stay-at-home mother, said, ‘This would go some way to addressing the discrimination against single-income families. It will not achieve parity, but it is a long overdue recognition of caring duties within the tax system.’
