Accordingly, any abolition of band transferability would result in the loss of this compensatory measure to the relevant taxpayers. These three options are detailed below along with a summary assessment of the distributional impacts involved. This would generally result, inter alia, in a redistribution from couples without children towards couples with children and in gains in the lower half of the income distribution. The Parent Allowance element could tilt the balance away from paid employment outside the home as it is only paid to parents in the home. This Option was considered on the basis that the increased tax yield arising from restriction of transferability should be retained within the tax system.
Losers outnumber gainers among one earner couples with children.
There would be few gainers or losers in the bottom three income deciles. The resources raised would not be targeted towards families with children and, as such, this approach would be at variance with Government policy to tax and welfare systems in favour of the family unit.