§ 34. Mr. SNOWDENasked if discharged soldiers in receipt of temporary pensions 146 are subject to Income Tax at the unearned income rate upon the amount of the pension; and, if not, why have the Commissioners of Taxes at Poole sent notices of assessment of Income Tax amounting to £2 15s. 6d. upon a pension of a shilling a day to H. J. Davis, of Poole, and a similar notice to F. Invett of an assessment of £3 4s. 1d. upon a pension of £28 10s. for the loss of an arm?
§ The CHANCELLOR of the EXCHEQUER (Mr. McKenna)My right hon. Friend has asked me to answer this question. No, Sir. Temporary pensions of discharged soldiers are not subject to Income Tax at the unearned income rate. The reduced rates of Income Tax for earned income are applicable to these pensions. I am having inquiry made into the cases referred to, and will communicate the result to my hon. Friend as soon as I am in a position to do so.