HC Deb 13 June 1907 vol 175 c1595
MR. WATT (Glasgow, College)

I beg to ask Mr. Chancellor of the Exchequer whether income tax is at present charged on monetary prizes gained for literary work or otherwise; and whether the same rule will apply under the new Finance Bill if it becomes law.

MR. RUNCIMAN

The question is one of assessment, which has to be determined by the Commissioners of Income Tax with respect to the circumstances of particular cases, but a monetary prize in the form of a single payment would not, as a rule, be chargeable, unless the circumstances were such as to render it part of the profits of the profession or vocation of the winner. The rules in this matter will not be affected by the Finance Bill, except when a chargeable receipt may fall within the definition of earned income.

MR. WATT

How is it prizes of a similar nature have boon taxed?

MR. RUNCIMAN

That is a matter for the Income Tax Commissioners. Each case is decided on its merits.