§ 2. Mr. FELLasked the Chancellor of the Exchequer what evidence is in the possession of the Government to prove that the persons who pay Income Tax at 162 the rate of 1s. 2d. in the £ only number 150,000; and whether all those persons who receive small dividends from which 1s. 2d. in the £ has been deducted are included among the 150,000 persons?
§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)The total number of Income Tax payers is estimated to be about 1,100,000. Of this number, at least 950,000 are entitled to relief in respect of small or earned incomes, leaving 150,000 who pay at the full rate. The figure 950,000 does not of course include persons who claim relief solely in respect of life insurance premiums. If these were added, the number of those who pay at the full rate in respect of their whole income, would be very small indeed. Recipients of small dividends from which tax is deducted at the source are for the most part of the class whose total incomes fall within the limits of exemption or abatement, which in such cases are conferred by way of repayment. Any recipients who are not entitled to relief are included in the estimate of 150,000.
§ Mr. FELLIs there no certain means of ascertaining how many Income Tax payers there are paying this 1s. 2d. in the £? I should suggest that it would be double this 150,000
§ Mr. LLOYD GEORGEI do not know why the hon. Gentleman says that it is double. I agree that we cannot ascertain exactly the precise figure, but we are able to arrive at something like a pretty fair estimate.