§ MR. HAROLD COXTo ask Mr. Chancellor of the Exchequer whether the income derived from royalties on patents is treated for purposes of income-tax as earned or unearned income; and whether any distinction is made between such income and income derived from copyrights.
(Answered by Mr. Lloyd-George.) The Answer to the first part of the Question is that such income is treated as unearned. No distinction is made between income derived-from royalties on patents and income derived from copyrights, save when the latter is received by the author himself whilst he is still exercising the vocation of an author, in which case it is treated as earned income.