HC Deb 31 July 1918 vol 109 cc430-1
58. Mr. PETO

asked the Chancellor of the Exchequer whether he can now make any statement as to the exemption from assessment to Income Tax of naval and military allowances in lieu of rations?


I have looked carefully into this matter and have come to the conclusion that the practice for the Navy and the Air Force may be assimilated to that which at present obtains for the Army. Broadly, the effect will be that where members of the naval, military or air forces receive pecuniary allowances in lieu of fuel and light, and rations to which they are entitled in kind, Income Tax will not be charged upon such pecuniary allowances. Lodging allowances will similarly be relieved except in the case of officers holding appointments for a fixed or practically fixed term.

Colonel ASHLEY

Will it be necessary to have a Bill or can it be done by administrative means?


I have looked into it. It is doubtful whether legislation is needed. In the meantime we will do it, and, if necessary, it will be included in next year's Finance Bill?


May we assume from the right hon. Gentle-man's reply that the Income Tax is not due on these allowances for the current Income Tax year?


Yes; that is my intention.