§ 108. Mr. RAMSAY MACDONALDasked the hon. Member for Worcestershire (Bewdley Division) whether his attention has been drawn to a decision of some supervisors that if men are living in huts provided by the Munitions Department or War Office 2s. 6d. per day will not be deducted from their wages for purposes of Income Tax Assessment; and whether that is the view of the Treasury in spite of Clause 6 of the Circular on the Quarterly Payment of Income Tax issued by the Board of Inland Revenue dated November, 1916?
§ Mr. BALDWINThe hon. Member is under a misapprehension. The Clause to which he refers explains that the value of a rent-free residence which a weekly wage earner is obliged to occupy and has no power to let is not reckoned as a part of his income for Income Tax purposes. Plainly a wage earner who is so provided with residential accommodation rent free cannot be allowed a deduction from the amount of his actual money earnings on account of an assumed cost of lodgings which he does not in fact incur.