§ MR. MARTIN (Worcestershire, Droitwich)To ask Mr. Chancellor of the Exchequer whether any portion of the funds of trades unions that are or may be made applicable to the general purposes of a union, and are not specifically earmarked or assigned to its charitable purposes, are exempt from income tax: and, if so, if he will state the regulations that exist governing such exemptions.
(Answered by Mr. Ritchie.) It is the practice of the Board of Inland Revenue, under the provisions of the Trade Union (Provident Funds) Act of 1893, to allow a registered trade union exemption from income tax in respect of so much of its interest and dividends as is actually applied for the purpose of provident benefits (as defined in the Act), whether specifically earmarked to such benefits or not. Section 2 of the Act prescribes 919 that the exemption is to be claimed and allowed in the same manner as in the case of income applied to charitable purposes, i.e., in accordance with the provisions of Section 98 of the Income Tax Act of 1842.